California Governor Gavin Newsom’s May Revision to the Fiscal Year 2026-27 budget proposes a significant expansion of the state’s sales and use tax base by applying tax to digital prewritten software, including electronically delivered software and Software-as-a-Service (SaaS). If enacted, the proposal would take effect January 1, 2027, and would apply regardless of how the software is delivered to the purchaser, including by physical media, download, or remote access through the internet.

Download Whitepaper