California to Tax Digital Products and SaaS Under New Sales and Use Law

California announced a new tax policy targeting digital goods. The rule extends sales and use tax to software‑as‑a‑service offerings. The measure treats SaaS as taxable like traditional software. Businesses selling digital products to California customers must collect the tax. The tax applies to both in‑state and out‑of‑state providers. Revenue projections suggest a boost to state collections. Companies may need to adjust pricing or compliance systems. The policy reflects broader efforts to modernize tax codes for the digital economy.