California Drafts New Rules for Sales Tax on Items With Software

California’s sales tax department wants feedback on new draft regulations for products like machinery and electronic devices that pair nontaxable software with tangible, taxable items.

The draft rules from the California Department of Tax and Fee Administration made changes to previously issued drafts on taxation of technology transfer agreements rather than moving to a formal regulatory proposal. The changes address feedback it already received at three informal workshops in the past two years.

The department will take in-person comments at another informal workshop on July 24 and written comments until Aug. 14 on its discussion paper and latest ...