Golden State Today

The California Chamber of Commerce has labeled SB 1327 (Glazer; D-Contra Costa) as a Job Killer for 2024. The bill proposes a 7.25% tax on revenue from digital advertising sales, in addition to existing income taxes. CalChamber's Senior Policy Advocate Preston Young stated, "This bill punitively targets only a handful of taxpayers that sell digital advertising, yet will financially cripple many, many small and medium-sized businesses." Businesses and consumers utilizing the digital economy could face increased costs if this tax is enacted, as companies may pass on the expense to consumers. California already holds the highest personal income tax rate in the country, along with high sales and gas tax rates, the sixth-highest corporate tax rate, and a housing affordability crisis. Critics argue that legislation like SB 1327 may hinder business operations in California and potentially reduce tax revenue instead of achieving its intended goals.