On Thursday, the California State Senate passed SB 1327, which would institute a 7.25% tax on digital advertising. The new taxes would fund California media outlets, including those controlled by private equity firms, which have decimated journalism in the state. The bill was brought to the floor today without notice and passed, despite the Senate’s crossover deadline expiring on May 24.

Earlier this year, Chamber of Progress sent a letter to Senate leaders urging them not to move forward with SB 1327 over concerns that the legislation would increase costs for local businesses and send revenues to private equity groups and right-wing outlets.

“There’s a reason the Senate didn’t pass this bill earlier – it’s going to have a crushing impact on California businesses that advertise to consumers digitally. Creating a new digital ad tax also has the downstream impact of hiking prices for consumers who buy products online,” said Chamber of Progress CEO Adam Kovacevich.  “The bill only passed today because it snuck through without notice. Let’s hope the Assembly thinks twice about hiking taxes on California small businesses in order to help hedge funds.”

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Chamber of Progress (progresschamber.org) is a center-left tech industry policy coalition promoting technology’s progressive future.  We work to ensure that all Americans benefit from technological leaps, and that the tech industry operates responsibly and fairly.  

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