California Enacts SB 122 – Sales Tax Expansion to Digital Products
On June 29, 2026, Governor Gavin Newsom signed Senate Bill 122 (SB 122), the budget trailer bill for the 2026–27 fiscal year, expanding California’s sales and use tax base to include certain digital software transactions, effective January 1, 2027. Under the new legislation, California’s 7.25% statewide sales and use tax, plus any applicable local district…





