Gavin Newsom proposes a California digital software tax
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Gavin Newsom proposes a California digital software tax
"California Gov. Gavin Newsom wants to ensure that the state's sale tax applies to digital software. Newsom said it isn't fair that someone has to pay sales tax for an in-person purchase but not for a download. If passed, the tax could be another blow to already reeling software and SaaS companies."
"Newsom said it isn't fair that someone has to pay sales tax for an in-person purchase but not for a download."
"If passed, the tax could be another blow to already reeling software and SaaS companies."
"How do digital taxes impact businesses? How could this tax affect Californians? What other states tax digital software?"
California Gov. Gavin Newsom wants the state’s sales tax to apply to digital software. The proposal targets the gap between paying sales tax for in-person purchases and not paying sales tax for software downloads. If enacted, the change could increase costs for software and SaaS companies already facing financial strain. The policy would also affect consumers by potentially raising prices for digital software in California. The proposal raises questions about how digital taxes affect businesses and how they could influence Californians who buy software online. It also prompts comparison with other states that already tax digital software.
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