On May 1, 2024, California Senator Steve Glazer proposed an amendment to California Senate Bill 1327 to impose a 7.25% tax on “data extraction transactions” in the state, targeting digital advertising. The proposal defines “data extraction transactions” as selling user information or engaging in barter for the ability to display advertisements or collect user data. The tax would apply to companies with at least $2.5 billion in gross receipts from such transactions in California. The proposal aims to tax only the largest companies involved in data extraction transactions, similar to Maryland’s controversial Digital Advertising Gross Receipts Tax.
Source Stateandlocaltax.com
