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California Senate Bill 122 expands sales tax treatment to include certain prewritten computer software, whether downloaded, transferred electronically, or accessed remotely through SaaS platforms, effective January 1, 2027. This episode explores key exemptions, sourcing challenges, the $5 million threshold, and practical compliance steps for software providers and purchasers preparing their contracts and systems.
California is expanding its sales tax base to include certain prewritten computer software, whether downloaded, transferred electronically, or accessed remotely through SaaS platforms.
They also examine sourcing issues, multiple points of use, billing-address requirements, the $5 million threshold, and emerging guidance from the California Department of Tax and Fee Administration.
The episode concludes with practical steps for software providers and purchasers preparing their contracts, systems, customer data, and compliance processes.
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