The Alabama Department of Revenue has begun notifying some adult websites that they will soon be subject to a new 10% tax on gross receipts, a provision of House Bill 164 that officially takes effect September 1. The tax applies to all commercial entities that operate adult websites and generate revenue from content considered “harmful to minors.”

The new levy arrives nearly a year after Alabama enacted HB 164 in April 2024, part of a broader anti-pornography initiative that also mandated age verification measures, which took effect in October 2024. Several prominent sites, including Pornhub, responded to the earlier rules by restricting access to Alabama users entirely.

According to notices reviewed by XBIZ, the tax is due on “all sales, distributions, memberships, subscriptions, performances, and all other content” considered harmful to minors and either produced, sold, filmed, generated, or otherwise based in Alabama.

Entities subject to the tax must register for a Material Harmful to Minors (MHM) tax account through the state’s My Alabama Taxes portal. Filing and payment of the tax will follow the same schedule and method as existing sales and use taxes, starting with September’s receipts, due in October.

A spokesperson for the Department of Revenue said that eleven entities have been notified so far. “We’re continuing our efforts to identify others,” the department stated, noting that internal research was used to identify potentially liable operators.

Legal experts warn that the law’s broad definition and enforcement strategy may invite constitutional scrutiny. Industry attorney Lawrence Walters described the tax as potentially “an unconstitutional content-based burden on speech.” He emphasized that any tax targeting a specific type of protected speech is likely to be “highly scrutinized by the courts.”

At present, however, no legal injunction is in place to block enforcement. Walters advised that website operators with any Alabama ties consult with tax counsel immediately.

The law could apply to platforms such as OnlyFans, cam sites, independent performers, and major subscription-based adult networks, particularly if they host creators based in Alabama or process payments from Alabama residents. How advertising-driven platforms will determine revenue derived from Alabama users remains unclear.

The practical implications of the tax may prove burdensome. Content creators based in Alabama could see higher platform fees, reduced visibility, or outright removal from certain adult platforms unwilling to shoulder the state’s compliance costs. Performers relying on digital distribution could be pushed into riskier offline sex work, critics say.

“This is not just a tax—it’s a structural barrier to safe income for performers,” said one platform representative who requested anonymity due to pending legal review.

HB 164 includes more than financial provisions. In addition to age verification mandates and the new tax, the law requires adult websites to display a controversial warning label. The label asserts, among other claims, that pornography is “biologically addictive,” “harms brain development,” and “increases demand for prostitution and child exploitation.”

Such statements have no clear scientific consensus and mirror language struck down in other states as unconstitutional compelled speech. A similar warning requirement in Texas was invalidated by federal courts in 2023.

The Alabama law echoes language from that case but has not yet been challenged. “The warning label may be particularly vulnerable to litigation,” Walters noted.

Alabama’s new enforcement push follows the U.S. Supreme Court’s decision in FSC v. Paxton earlier this summer, which upheld Texas’s authority to require porn sites to verify user ages. That ruling has emboldened state-level regulators to introduce more aggressive restrictions on adult content under the banner of protecting minors.

Alison Boden, executive director of the Free Speech Coalition, warned that the legal landscape is shifting, saying, “In a post-Paxton world where the meaning of the First Amendment is seemingly up for grabs, it’s unclear how courts might respond to Alabama’s tax.

For now, Alabama’s porn tax is on track to be enforced beginning September 1, with more notifications expected in the coming weeks. Websites that fail to register or comply may face financial penalties and further legal complications under the state’s Deceptive Trade Practices Act.

Website operators and content creators with business, technical infrastructure, or customer bases in Alabama are urged to evaluate their exposure and prepare for compliance or consider legal action.