California’s sales tax expansion: What businesses need to know

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California’s sales tax expansion: What businesses need to know

August 04, 2026

United States
United States
United States

California has enacted one of its most significant sales tax changes in decades, expanding the state’s sales tax base to include electronically delivered and remotely accessed software. In this episode of the SALT Shaker Podcast, hosts and Partners Jeremy Gove and Chelsea Marmor are joined by Partners Michele Borens and Charlie Kearns, both of whom bring extensive state tax legislative experience and insight into the policymaking process, to discuss Senate Bill 122 and its far-reaching implications for taxpayers.

They examine California’s historical treatment of software and digital products, the budget pressures that helped drive the legislation, and the unusually rapid legislative process that led to the bill’s enactment. The conversation also explores the law’s unique structure, key definitions and exclusions, multiple points of use provisions, and the significant compliance challenges businesses may face before the law takes effect.

Plus, the group weighs in on whether swimming is overrated or underrated, both as a sport and a summertime activity.

The materials on the Eversheds Sutherland website are for general information purposes only and do not constitute legal advice. While reasonable care is taken to ensure accuracy, the materials may not reflect the most current legal developments. Eversheds Sutherland disclaims liability for actions taken based on the materials. Always consult a qualified lawyer for specific legal matters. To view the full disclaimer, see our Terms and Conditions or Disclaimer section in the footer. Eversheds Sutherland is a provider of legal and other services operating through various separate and distinct legal entities. For further information about these entities and Eversheds Sutherlands' structure please see the Legal Notice page of this website.

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micheleborens@eversheds-sutherland.com

Michele Borens

Partner

Washington, DC, United States

jeremygove@eversheds-sutherland.com

Jeremy P. Gove

Partner

New York, United States

charliekearns@eversheds-sutherland.com

Charles C. Kearns

Partner

Washington, DC, United States

chelseamarmor@eversheds-sutherland.com

Chelsea E. Marmor

Partner

New York, United States

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