On July 21, 2026, the California Department of Tax and Fee Administration (CDTFA) held its first implementation workshop meeting regarding Senate Bill 122 (SB 122), which extends California’s sales and use tax to digital software and software-as-a-service (SaaS) effective Jan. 1, 2027. Signed by Gov. Gavin Newsom on June 29, 2026, SB 122 marks the most significant expansion of California’s sales and use tax base in decades.
The workshop drew more than 400 in-person and online participants, and the questions ranged from general scope of the new rules to specific, as-applied fact patterns. The CDTFA offered some clarification, acknowledged that numerous open issues would need to be resolved through emergency regulation, and repeatedly emphasized the limits of its authority — noting that certain relief stakeholders sought would require action by the legislature, rather than the department.