The sex industry is not only profitable, it’s also a guaranteed headline maker. That’s what the state of Kansas learned when it set its sights on a company that had defaulted on its tax bill and claimed to be inventory rich but cash poor. As the company worked with the 
state to resolve the issue they struck upon an arrangement that would satisfy the Tax Man and also create news headlines across the country.
The Taxman Cometh
In 2014, businessman Larry Minkoff had a serious problem. He owed the state of Kansas more than $150,000 in back taxes but claimed he simply didn’t have the funds to pay the debt. He worked with the state to strike a deal – he would surrender inventory from his chain of adult merchandise outlets he operated in several cities in order to pay off the outstanding amount.
The state accepted the deal, took possession of the inventory and, in September of 2014, the state launched a massive auction on thousands of adult products. The move was criticized by some as being state endorsed pornography while others saw it more pragmatically, acknowledging the sale was about settling a debt as opposed to endorsing or promoting erotica.
Bartering with Sex
This deal isn’t the first time someone has used erotica to barter or buy their way out of trouble. People have been buying and selling erotic objects and art since the dawn of man. From shady newsagents offering books and magazine from “behind the counter” to modern day porn brokers who sell fetish items online, erotica is always a sure seller. So why did the Kansas decision make headlines?
It was, to be fair, the first time any state sanctioned the sale of sex toys and erotica in order to recoup a tax bill. But seizing inventory to auction off in order to satisfy a debt is hardly a new practice. In most cases, the state will go after larger ticket items such as houses, boats, cars and real estate but, in this case, the company’s greatest assets were easy to see – their massive inventory of in-demand and high-quality adult toys.
The adult toy industry is worth an estimated $15 billion a year and current estimates predict that will only grow in years to come. The fact of the matter is that sex sells and it sells a lot. Every culture on the planet has a rich and somewhat sordid history of high-brow erotica and mainstream pornography, proving the demand for such material is always high.
Still, some question whether or not a state agency should have sanctioned the deal. Their concerns are grounded in the idea that by selling the items publicly, the state could be seen as being particularly pornography friendly, a serious problem for a conservative state such as Kansas.
But the truth is that the state itself never had anything to do with the sale of the items. In the end, the state department opted to release the inventory back to the company and they then auctioned the items off with all proceeds being applied directly to their tax bill. By removing the state from the sale of these items, lawmakers hoped to distance themselves from the issue, concerned the scandal would cause damage or just a lot of snickering.
The debt was paid off and now Larry Minkoff and his company continue to struggle on, though they’ve not made headlines like that since the historic decision. In fact, the publicity generated by the sale may have even helped the company, though Minkoff remains primarily associated with various legal actions. Still, in the end, it’s proof that even in the 21st century, sex is a powerful form of currency.
