Proposed Digital Ad Tax on Social Media Stalls in California

A California bill that would have taxed social media platforms’ gross receipts from digital advertising to fund programs related to youth mental health stalled out in committee.

The bill, A.B. 796, didn’t get approval from the state Assembly’s Tax and Revenue Committee, meaning it can’t proceed further. It had previously cleared the chamber’s Privacy and Consumer Protection Committee with a 7-2 vote last session before being picked back up this session.

The tax panel’s chair Mike Gipson (D) referred the bill back to the suspense file at a committee hearing Monday, effectively killing its chances of being passed ...