The state already applies a 7.25 percent tax to software sold in physical stores, and now Governor Gavin Newsom wants to expand this to web-based software sales as well, Bloomberg reports. The proposed tax wouldn’t apply to streaming services and is expected to raise $2 billion annually. [Link: Newsom Pitches Software Tax to Raise Billions in New Revenue | https://www.bloomberg.com/news/articles/2026-05-14/newsom-pitches-software-tax-to-raise-billions-in-new-revenue | Bloomberg]
The state already applies a 7.25 percent tax to software sold in physical stores, and now Governor Gavin Newsom wants to expand this to web-based software sales as well, Bloomberg reports.
The proposed tax wouldn’t apply to streaming services and is expected to raise $2 billion annually.
[Link: Newsom Pitches Software Tax to Raise Billions in New Revenue | https://www.bloomberg.com/news/articles/2026-05-14/newsom-pitches-software-tax-to-raise-billions-in-new-revenue | Bloomberg]
California Proposes Software Tax More Suited to the Modern Era
Gavin Newsom proposes a California digital software tax
Gavin Newsom blasts Trump and Bessent as 'dumb and dumber' while unveiling $350 billion state budget | Fortune
Newsom proposes $100 million for disaster rebuilding post LA fires
