STATE OF NEW JERSEY \n209th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2000 SESSION
Sponsored by: \nAssemblywoman ROSE MARIE HECK \nDistrict 38 (Bergen) \nAssemblyman GUY F. TALARICO \nDistrict 38 (Bergen)
SYNOPSIS \n"Adult Entertainment Tax Act."
CURRENT VERSION OF TEXT \nIntroduced Pending Technical Review by Legislative Counsel.
An Act imposing a gross receipts tax on adult entertainment products and services, supplementing Title 54 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. This act shall be known and may be cited as the "Adult Entertainment Tax Act."
2. a. Except where the context otherwise requires, the terms used in this act shall have the meanings set forth in section 2 of P.L.1966, c.30 (C.54:32B-2).
b. For purposes of this act: "Adult entertainment products and services" includes any and all products and services, the primary purpose of which is the sexual stimulation of humans, including, but not limited to, the rental or sale of X-rated video tapes, pornographic pay-per-view services, phone sex services, pornographic magazines, pornographic computer or video games, pornographic materials transmitted to computers, admittance to a strip club, and products and services sold at a strip club. "Adult entertainment products and services" does not include legitimate medical, scientific, educational, artistic, political, or literary materials in whatever form, including, but not limited to, publications, performances, films, photographs, telephonic representations and descriptions, and videotapes; "Pornographic" means containing any of the following: images of actual or simulated, or verbal or written representations or descriptions of, human sodomy, oral copulation, sexual intercourse, masturbation, bestiality, genital or rectal exposure, or the exposure of a penis in an erect and turgid state, and live performances, characterized by the display of complete nudity or the performance of actual or simulated sexual activities.
3. a. In addition to the tax, if any, imposed under P.L.1966, c.30 (C.54:32B-1 et seq.) on receipts from sales of property, receipts from sales of services, or admissions charges, a tax is imposed upon all vendors of adult entertainment products and services at the rate of 5 percent of the gross receipts from the sale, except for resale, of adult entertainment products and services.
b. In addition to the tax, if any, imposed under section 6 of P.L.1966, c.30 (C.54:32B-6 et seq.) on the use of property, unless property, services or admissions have already been or will be subject to the tax imposed under subsection a. of this section, there is imposed on and shall be paid by each person a gross receipts tax for the use within this State of adult entertainment products and services at the rate of 5 percent of the consideration paid, the receipt or the charge for the adult entertainment products and services. Uses shall not be subject to the gross receipts tax imposed by this subsection to the extent that an adult entertainment gross receipts tax was legally due and paid thereon, without any right to a refund or credit thereof, to any other State or jurisdiction within any other State. To the extent that the tax imposed by this section is at a higher rate than the rate of tax in the first taxing jurisdiction, this exemption shall be inapplicable and the tax imposed by this subsection shall apply to the extent of the difference in such rates.
4. a. The director shall collect and administer the tax imposed pursuant to the provisions of this act. In carrying out the provisions of this act the director shall have all the powers granted in P.L.1966, c.30 (C.54:32B-1 et seq.).
b. A vendor or user required to pay the tax imposed pursuant to this act shall, on or before the dates required pursuant to section 17 of P.L.1966, c.30 (C.54:32B-17), forward to the director the tax owed on receipts and charges paid or uses in the preceding month and make and file a return for the preceding month with the director on any form and containing any information as the Director of the Division of Taxation in the Department of the Treasury shall prescribe by rule or regulation as necessary to determine liability for the tax in the preceding month during which the person was required to pay the tax.
c. The director may permit or require returns to be made covering other periods and upon any dates as the director may specify. In addition, the director may require payments of tax liability at any intervals and based upon any classifications as the director may designate. In prescribing any other periods to be covered by the return or intervals or classifications for payment of tax liability, the director may take into account the dollar volume of tax involved as well as the need for ensuring the prompt and orderly collection of the tax imposed.
d. The director may require amended returns to be filed within 20 days after notice and to contain the information specified in the notice.
e. The taxes imposed under this act shall be governed by the provisions of the "State Tax Uniform Procedure Law," R.S.54:48-1 et seq.
5. The net receipts of all collections under this act shall be paid over to the State Treasurer and shall be deposited into a dedicated account in the Victim and Witness Advocacy Fund administered by the Division of Criminal Justice in the Department of Law and Public Safety. The monies deposited to the account, and any earnings thereon, shall be appropriated and used for the benefit of victims and witnesses of crime as provided in section 20 of P.L.1991, c.329 (C.52:4B-43.1), and for related administrative costs. Of the amount deposited in the special account, 50% shall be used for, or directed as grants to, programs in relief of domestic violence and 50% shall be used for, or directed as grants to, programs in relief of child abuse.
6. This act shall take effect immediately but remain inoperative until January 1, 1998, and apply to sales, services, admissions and uses on and after that date.
STATEMENT
This bill imposes a 5% gross receipts tax on the sale or use of adult entertainment products and services. The proceeds of the tax are dedicated to programs in prevention of domestic violence and child abuse. This bill defines adult entertainment services to include any products or services the primary purpose of which is the sexual stimulation of humans, including pornographic materials but not including legitimate medical, scientific, educational, artistic, political, or literary materials. The bill defines materials as pornographic if they depict actual or simulated sexual acts or are live performances characterized by complete nudity. The bill dedicates the revenues from the 5% gross receipts tax on the sale or use of adult entertainment products and services to the Victim and Witness Advocacy Fund administered by the Division of Criminal Justice in the Department of Law and Public Safety. The Victim and Witness Advocacy Fund currently supports the development and provision of services to victims and witnesses of crimes, funding the State and county offices of victim and witness advocacy and not-for-profit organizations that provide direct services to victims and witnesses, including medical and legal advocacy services, 24-hour crisis response services and 24-hour hotlines, information and referral services, psychiatric treatment programs, services for a victim's family and the victim's significant other, and counseling and support groups. The bill dedicates the 5% gross receipts tax on the sale or use of adult entertainment products and services to a special account in the fund, 50% to be used for, or directed as grants to, programs in relief of domestic violence and 50% to be used for, or directed as grants to, programs in relief of child abuse.
Gene sez: "Call me naive, but if a state on one hand is willing to prosecute an act or a video as being pornographic, then in the same breath, wants to tax it, aren't they being complicit in a crime?"
