California considers 25% Porn Tax

[Toby]

I don't think the tax would really change consumer habits significantly. The real impact would be on the bottom line of the adult DVD industry, which is already taking it on the chin. I think we'd see more companies moving production to Canada and other more porn friendly locales.

As for taxing online sales, they could only apply that to sales within CA and even then might be running afoul of federal regulations.

Typical for California, where they tend to over legislate everything.