California is expanding its sales tax base to include certain prewritten computer software, whether downloaded, transferred electronically, or accessed remotely through SaaS platforms.

In this episode of Greenberg Traurig’s GeTtin’ SALTy podcast, host Nikki Dobay welcomes GT colleague Samantha Trencs as a featured guest to discuss California Senate Bill 122, the Jan. 1, 2027, effective date, key exemptions, and the challenges of applying traditional tangible personal property rules to digital products.

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.