"Sin tax" law in Alabama

[Churchmouse]

Hi there! very specific question. There was recently a law passed that taxes 10% for porn created, produced, etc in the state of Alabama.
Earlier this year when I lived in the state and applied to become a model Chaturbate denied because I was in a "restricted region" and stated it was because of the newly implemented tax law and they weren't sure how to handle the situation yet. This was in July. I'm wondering if that's still a problem, or have they reached a solution to the law.
I'm only asking because I actually moved to another state and I'm working on CB rather sucessfully, but I will be moving back to AL next year and would love to keep doing this for work.
Thank you for any insight

 

[Squinkle]

Hopefully someone here is from Alabama and can help answer, but have you tried contacting CB support about it? They can give you a more clear answer than we can.

I'm genuinely curious about this too.

 

[Ich Bin]

Hi there! very specific question. There was recently a law passed that taxes 10% for porn created, produced, etc in the state of Alabama.
Earlier this year when I lived in the state and applied to become a model Chaturbate denied because I was in a "restricted region" and stated it was because of the newly implemented tax law and they weren't sure how to handle the situation yet. This was in July. I'm wondering if that's still a problem, or have they reached a solution to the law.
I'm only asking because I actually moved to another state and I'm working on CB rather sucessfully, but I will be moving back to AL next year and would love to keep doing this for work.
Thank you for any insight

Your post caught my attention. I informed a model who lives there but hasn't broadcasted for several months. Not CB.
She was intending on working again soon. She had not heard about this but definitely has to find out.

 

[Vixxen81]

This is a question for support, I think. None of us have the answer.

 

[cbhours]

This is a question for support, I think. None of us have the answer.

if its 10% tax charged to the model on top of the 5% to state i know the answer! leave alabama xD

Why did they even add producing to the wording of the law, its ridiculous. Its no wonder CB doesnt want to deal with it, I imagine with the way its worded CB has to give 10% of all token sales originating from alabama customers but if the model is in alabama they have to some how charge 10% to all transactions going to do the model right? and the only easy way to do that is to lower the models cut by 10%.

 

[Vixxen81]

if its 10% tax charged to the model on top of the 5% to state i know the answer! leave alabama xD

Why did they even add producing to the wording of the law, its ridiculous. Its no wonder CB doesnt want to deal with it, I imagine with the way its worded CB has to give 10% of all token sales originating from alabama customers but if the model is in alabama they have to some how charge 10% to all transactions going to do the model right? and the only easy way to do that is to lower the models cut by 10%.

I haven't read it because I feel like I'd have an aneurysm if I did. But if that is the letter of the law, yeah, I can't see CB complying, though they did pay the fine in Texas when they refused to put up age verification.

There are many days where I feel like I need to find an alternative career.

 

[Squinkle]

if its 10% tax charged to the model on top of the 5% to state i know the answer! leave alabama xD

Why did they even add producing to the wording of the law, its ridiculous. Its no wonder CB doesnt want to deal with it, I imagine with the way its worded CB has to give 10% of all token sales originating from alabama customers but if the model is in alabama they have to some how charge 10% to all transactions going to do the model right? and the only easy way to do that is to lower the models cut by 10%.

Because of the way it's worded, CB would have to lower the model's cut by 20% if they did it that way.
The text of Alabama Code § 8-19G-10 imposes a 10% tax on the "gross receipts of any commercial entity operating an adult website.”

10% is the tax imposed on token SALES that wind up in a model's pocket. Since models only get ~50% of the token sale price, they would have to take 10% of the models' 50%. That's 20% of the model's total pay.

Yeah, leaving Alabama is definitely the answer.

 

[Vixxen81]

Ok but CB doesn't take taxes from us so the tax would be an additional tax on the model's income when they file their taxes with the IRS.

 

[Squinkle]

Ok but CB doesn't take taxes from us so the tax would be an additional tax on the model's income when they file their taxes with the IRS.

It's a tax levied by the state, so the IRS has nothing to do with it. The law specifies that the site itself has to file the tax in the same way they would remit sales tax to the state. 1099 workers do not owe any additional tax.

Even so, CB could choose to take the sales cut from the models to tank their newly required tax. Hopefully they don't, but it's most likely how they will handle it, so they don't decrease their own revenue.

CB could also levy the 10% tax on all token packages purchased in Alabama. That could solve the issue too.

It's stupid that they're disallowing models instead.

 

[cbhours]

10% is the tax imposed on token SALES that wind up in a model's pocket. Since models only get ~50% of the token sale price, they would have to take 10% of the models' 50%. That's 20% of the model's total pay.

You're right but since the smaller packages have a different per token value than the larger....oh that just gives me a headache thinking about the pain in the ass that would be to deal with.

 

[Squinkle]

You're right but since the smaller packages have a different per token value than the larger....oh that just gives me a headache thinking about the pain in the ass that would be to deal with.

Right? Which is why it seems they've shut off the Alabama region for now.

They could impose the tax directly at the token sale too. That seems the easiest way. But then will they go by IP or ID when the sale is made? Because VPN users could easily avoid the tax.

Idk it's a mess.

 

[Vixxen81]

It's a tax levied by the state, so the IRS has nothing to do with it. The law specifies that the site itself has to file the tax in the same way they would remit sales tax to the state. 1099 workers do not owe any additional tax.

Even so, CB could choose to take the sales cut from the models to tank their newly required tax. Hopefully they don't, but it's most likely how they will handle it, so they don't decrease their own revenue.

CB could also levy the 10% tax on all token packages purchased in Alabama. That could solve the issue too.

It's stupid that they're disallowing models instead.

I meant to type state income tax. I was in a hurry and walking out the door.

 

[LaceyRoyce]

Hi there! very specific question. There was recently a law passed that taxes 10% for porn created, produced, etc in the state of Alabama.
Earlier this year when I lived in the state and applied to become a model Chaturbate denied because I was in a "restricted region" and stated it was because of the newly implemented tax law and they weren't sure how to handle the situation yet. This was in July. I'm wondering if that's still a problem, or have they reached a solution to the law.
I'm only asking because I actually moved to another state and I'm working on CB rather sucessfully, but I will be moving back to AL next year and would love to keep doing this for work.
Thank you for any insight

Do not move back to Alabama- sites are all banning models from there. It’s more than just the tax - the law comes into full effect in Dec I believe and is incredibly restrictive. Model releases must be notarized etc.

As a result sites have begun banning models from there - adult empire and iwc both ban Alabama models and iwc also bans members from Alabama as well

 

[LaceyRoyce]

Double post but people in North Carolina should worry too.

The law comes into effect there in one week, is retroactive and is going to completely fuck me and all my content I’ve shot in studios there and with models w NC ids

 

[MarieElise]

In order to be broadcast in Alabama we have to do a special interview thing with SM. They've been trying to get everyone to do it forever. I'm sure a lot of models have done it, but I honestly don't care as much, if I miss out on Alabama clients since none of my Regs are from there anyway. However this is really unfair for models and people who have prior work done in these areas. I'm sorry for that

The reason SM wants us to schedule a zoom call with them, for Alabama, must be something to do with this.

 

[Squinkle]

Double post but people in North Carolina should worry too.

The law comes into effect there in one week, is retroactive and is going to completely fuck me and all my content I’ve shot in studios there and with models w NC ids

You don't owe the tax. The pornographic site owes the tax. You won't pay it unless the site decides, going forward, to take it from your check. The site cannot do that retroactively. Your tax situation remains the same.

Unless you host your very own site where you sell content. Then your site would owe the tax too. But only for what you sold on your personal site.

 

[LaceyRoyce]

You don't owe the tax. The pornographic site owes the tax. You won't pay it unless the site decides, going forward, to take it from your check. The site cannot do that retroactively. Your tax situation remains the same.

Unless you host your very own site where you sell content. Then your site would owe the tax too. But only for what you sold on your personal site.

Was this a reply to me? My response was not regarding the tax.