Type: Legislation
California’s AB 2829, proposing a 5% tax on digital advertising service revenues, failed to pass committee before the deadline. Senator Steve Glazer introduced amendments to SB 1327, suggesting a 7.25% tax on gross receipts from “data extraction transactions” starting 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 in exchange for displaying ads or collecting data, with the tax apportioned based on user location. Joint liability would apply to unitary group members. The bill is scheduled for a hearing on May 8, 2024.
Effective date: January 1st, 2025
