California 7.5% Digital Ad Tax Wins in Surprise Senate Vote

The California Senate gave a strong show of support Thursday to a bill imposing a 7.5% tax on digital advertising to fund initiatives to rebuild local journalism, surprising many who thought the measure had been scuttled.

Senators approved S.B. 1327 by a vote of 27-7, well above the two-thirds threshold necessary for passage. The measure now moves to the Assembly, which has until Aug. 31 to approve or reject it.

The action on S.B. 1327 was unexpected because the primary sponsor, Sen. Steve Glazer (D), said last month he doubted he could muster the votes to hurdle the two-thirds ...