California digital tax bills update

• California SB 1327, which would impose a 7.25% tax on gross receipts from “data extraction transactions,” passed the Senate Appropriations Committee but was not brought before the full Senate for a vote before adjournment. The bill may still be brought to a vote due to its urgency clause.
• AB 886, which passed the Assembly in June 2023, has been amended and reassigned to the Senate Judiciary Committee. The bill would require covered platforms to either pay a certain amount annually to compensate digital journalism providers or participate in an arbitration process to determine the percentage of advertising revenue remitted to providers and pay an award if applicable.
• AB 886 defines a “covered platform” as an online platform meeting certain criteria regarding user base and ownership/control. The bill requires covered platforms to compile and post a list of digital journalism providers accessed for a California audience on their websites.

Source PwC

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