Bill > HB720

This bill establishes a new 10 percent tax on the gross receipts of any commercial entity operating an "adult website," which is defined as a website, application, or digital platform that uses the internet to disseminate content, a "substantial portion" of which is "material harmful to minors." "Material harmful to minors" and "substantial portion" are defined by referencing an existing law, § 8.01-40.5. This tax applies to all sales, distributions, memberships, subscriptions, performances, and other content that is considered material harmful to minors and is produced, sold, filmed, generated, or otherwise based in the Commonwealth of Virginia. The revenue generated from this tax will be deposited into the Behavioral Health and Developmental Services Trust Fund. The Department of Taxation will administer and enforce this tax similarly to the retail sales and use tax, and the Tax Commissioner will create guidelines for its implementation, which will be exempt from the Administrative Process Act. The bill also includes a provision stating that if any part of the new tax law is found invalid, the entire enactment will be considered invalid.

Budget and Finance

https://lis.virginia.gov/bill-details/20261/HB720