California would tax cloud-based software for the first time under a bill that cleared its legislature, creating a new source of revenue for the state’s budget.
The Senate passed S.B. 122 Thursday by a vote of 28-10. Democratic leaders crafted the bill to support state spending under a proposed $356 billion budget agreement for fiscal 2027. The Assembly approved the measure by a 56-20 vote Monday.
Gov. Gavin Newsom (D) recommended the tax in May as part of his annual budget revision process. The bill is a feature of the broader negotiations between Newsom and the Democratic-controlled legislature on a ...