- California AB 2829, which aimed to impose a 5% tax on the annual gross revenues from digital advertising services, did not pass committee before the deadline.
- Senator Steve Glazer proposed amendments to SB 1327, suggesting a 7.25% tax on gross receipts from “data extraction transactions” effective from January 1, 2025, with a $2.5 billion threshold.
- SB 1327 defines “data extraction transactions” as selling user information or access to users to advertisers while engaging in a barter by providing services to a user in exchange for the ability to display advertisements or collect data. The tax would be apportioned based on user location, and joint liability would apply to unitary group members. The bill is set for a hearing on May 8, 2024.
Source PwC
