On September 1, 2026, the California Department of Tax and Fee Administration (CDTFA) published a Discussion Paper, including proposed emergency regulations (Draft Regulations) that would amend existing sales and use tax regulations and adopt new ones, on the application of the sales and use taxes to digital products. The Discussion Paper is CDTFA’s first step in adopting emergency regulations that would implement the sales and use tax base expansion adopted by Senate Bill 122, which takes effect on January 1, 2027.
Read the full legal alert here.