Bill
HB 1121
A new fee would be imposed on sexually oriented businesses in North Carolina to generate revenue for enforcement, regulation, and related programs.
HB 1121 (2025 Session) – Added Fee for Sexually Oriented Businesses (North Carolina)
Overview
- Purpose: Introduce and impose an additional fee on sexually oriented businesses (SOBs) within North Carolina. The bill aims to generate revenue likely for enforcement, public health, or related regulatory needs, though the exact stated purpose would be in the bill’s text. The filing indicates continued consideration by the Legislature in 2025–2026, with several House sponsors.
- Status: Filed on April 29, 2026.
Key provisions (as typically included in SOB fee bills)
- New fee imposition: The bill would create a new fee assessed on sexually oriented businesses operating within the state or within specific localities. The exact fee amount (e.g., per location, per customer, or annual) would be specified in the bill.
- Applicability: SOBs generally covered include establishments that provide erotic materials or performances for patrons, such as adult entertainment venues, adult bookstores, or related venues, subject to definitions in the bill.
- Fee collection: Provisions would establish who collects the fee (state tax/fee authority or local government), the filing/remittance process, and reporting requirements.
- Uses of revenue: The bill would designate how collected funds are to be used (e.g., law enforcement, regulatory compliance, public health initiatives, youth protective services, or other related state/local programs). The specific allocation would be in the text.
- Compliance and enforcement: Penalties for nonpayment or late payment, including interest, fines, or license suspensions, as well as potential audits or enforcement mechanisms.
- Local impact considerations: The bill may address how the fee interacts with municipal ordinances or local government collections, and whether localities must adopt similar fees or can opt out.
Who would be affected
- Businesses: Sexually oriented businesses operating in North Carolina would be subject to the new fee. This includes owners, managers, and financial officers responsible for tax/fee compliance.
- Localities: Depending on the bill’s structure, municipalities or counties enforcing the fee could incur administrative responsibilities; or the state could centralize collection with local pass-through.
- Workforce and patrons: Indirectly, employees at SOBs and patrons might experience changes in operating costs passed through to consumers, though the bill would primarily impact business compliance and revenue.
Procedural and timeline aspects
- Introduction and sponsorship: House sponsors listed include Monika Johnson-Hostler, Jeff McNeely, Tricia Cotham, Paul Scott, and Dennis Riddell (co-sponsors).
- Next steps: After filing, the bill would undergo committee assignments, potential amendments, and floor consideration. If enacted, the effective date and any staggered applicability (e.g., phased in over a year) would be specified in the bill.
- Effective date: The text would specify the date (e.g., upon enactment, or a future effective date) and any transitional period for existing SOBs.
Notes for readers
- This summary reflects the bill’s stated purpose and likely structure based on typical SOB fee legislation. For precise definitions (e.g., what constitutes a sexually oriented business), exact fee amounts, collection mechanisms, and earmarked uses of revenue, the bill’s full text should be consulted.
- As with all proposed revenue measures, stakeholders may consider impacts on small businesses, local government administration, and community policy goals.
If you’d like, I can tailor this summary to include hypothetical numeric examples or compare with similar existing North Carolina fee measures.
Compiled from official sources — confirm details with the bill’s official record.
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