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California proposes tax on online software sales.
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]
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businessinsider.com
Gavin Newsom proposes a California digital software tax
California Gov. Gavin Newsom said it's unfair how some people avoid paying the state sales tax when buying software.
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benzinga.com
Microsoft, Salesforce In Focus As Gavin Newsom Proposes Tax On Digital Software Downloads In California—
California Gov. Gavin Newsom proposed taxing digital software downloads to match in-store software sales taxes.
