- California’s SB 122 will tax prewritten software and SaaS starting January 1, 2027.
- The tax applies to software delivered electronically or accessed remotely, including SaaS.
- The law adds “digital product” to the definition of tangible personal property.
- Custom software remains exempt.
- If a retailer’s remotely accessed digital-product sales to one purchaser exceed $5 million in a year, the purchaser must self-assess and pay use tax directly.
Source: avalara.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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