Tax on Digital Property:
Proposed Tax on Digital Property Brought Back to Life in Special Session

In April, the Assembly Revenue and Taxation Committee on a bipartisan vote rejected a legislative proposal to extend California's sales and use tax to digital property, but the idea has been revived. Assemblyman Charles Calderon has introduced the following bills in the third special session:

Sales of Digital Property. AB 22XXX (Calderon), introduced June 25, requires the State Board of Equalization to report to the Legislature on the sales of digital property. The report must include a proposed regulation to tax such property, and a revenue estimate. This bill is keyed a majority-vote bill.

Tax on Sales of Digital Property. AB 23XXX (Calderon) introduced June 25, imposes the sales tax on digital property. The bill is keyed a two-thirds vote bill.

The legislation is intended to extend the sales and use tax to downloads of online music, movies, ring tones, games, books and other digital property

Assemblyman Calderon's previous bill, AB 1956, was opposed by several BOE members, and by Cal-Tax and more than 130 companies and organizations.

Cal-TaxReports June 30, 2008

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