California Digital Ad Tax Bill Lacks Details but Wins First Vote

A California bill to tax social media platforms’ gross receipts from digital advertising to fund programs related to youths’ use of the platforms appeared to pass its first test Tuesday with a preliminary 7-2 vote from the state Assembly Privacy and Consumer Protection Committee.

The bill (A.B. 796) doesn’t specify the tax rate yet, and its author, Assemblymember Josh Lowenthal (D), said that discussion will take place as it moves next to the Assembly Revenue and Taxation Committee. The privacy committee must first make an official declaration that ...