NC Senate Committee Advances Bill Adding Tax on Obscene Materials
State lawmakers advance legislation imposing 50% tax on obscene materials to fund human trafficking prevention efforts.
RALEIGH, NORTH CAROLINA — A North Carolina Senate committee advanced legislation Tuesday that would impose a 50% excise tax on obscene sexual material harmful to minors, with revenue directed toward combating human trafficking in the state.
Senate Bill 1007 also would establish a North Carolina Human Trafficking Commission and allocate funding to better coordinate the state’s prevention efforts. Members of the Senate Judiciary Committee noted current programs lack proper organization.
“We want to continue advancing the training tools and resources necessary to adequately support victim survivors and to hold traffickers accountable,” said Sen. Ted Alexander (R-Cleveland), the bill’s sponsor. “Services in North Carolina do remain fragmented despite a long desire for collaboration and coordination across sectors.”
Tax Would Target Already-Illegal Content
The proposed excise tax would apply only to material already prohibited under state law, including obscene content deemed “patently offensive” under community standards and not protected by the First Amendment. The tax also covers sexually explicit material sold to minors.
Alexander explained the tax would primarily be applied after criminal charges have been filed against violators.
“My understanding is that when these things are confiscated, when they’re sold and they’re caught selling those kinds of things that are illegal, that there is a tax to be paid on those and the Department of Revenue can assess what that is at that time,” Alexander said in an interview.
Revenue Projections Still Unknown
Committee members have not yet received projections for how much revenue the state could expect to collect under the proposed tax. Alexander said they have requested that financial information from state officials.
The uncertainty surrounding potential revenue collection raises questions about the practical implementation of the tax on already-illegal materials.
Senate Bill 1007 includes provisions preventing the state Department of Revenue and its personnel from sharing “confidential tax information” obtained through this process for use in criminal prosecutions over obscene materials.
State Ranks High in Trafficking Cases
Alexander told committee members that North Carolina has ranked as high as eighth nationally in human trafficking cases, highlighting the need for enhanced prevention and victim support services.
The proposed Human Trafficking Commission would work to coordinate existing programs and resources across different sectors and agencies currently operating independently.
During Tuesday’s committee meeting, lawmakers identified some OnlyFans payments as potentially falling under the scope of the legislation, though the full extent of covered materials remains unclear pending further legal review.
The committee’s action moves the bill forward in the legislative process, though it must clear additional hurdles before reaching the governor’s desk.
