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California proposes 7.25% sales tax on digital software and SaaS

May 15, 2026

California proposes 7.25% sales tax on digital software and SaaS starting January 2027, projected to generate $900M annually and directly impacting AI/ML software vendors operating in the state.

SOURCE

https://news.bloomberglaw.com/ip-law/newsom-pitches-software-tax-to-raise-billions-in-new-revenue

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