California lawmakers pass UK and Canada-like software tax that US 'fought' to remove

California is set to implement a new sales tax on digital software downloads, impacting platforms like Slack and Google Workspace starting next year. Governor Newsom expects the measure, projected to generate $900 million annually, to primarily affect businesses. This move draws parallels to international digital services taxes, though California's approach expands existing sales tax to digital purchases for fairness, aiming to equalize tax burdens between physical and online software buyers.

By TOI TECH DESK