California Voters Will Consider Local Tax Measures
Residents across the state will decide on 61 proposed sales tax increases on November 3.
Updated on Sept. 29, 2026 in Taxes
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Do you support applying sales taxes to software subscriptions and digital products in your state?
On November 3, California voters will head to the polls to decide on 61 local sales tax measures aimed at funding city services. Additionally, the state will implement a new digital goods tax starting January 1, 2027.
Why it matters
These local ballot initiatives are designed to bolster funding for essential public services like road maintenance and public safety. Simultaneously, the new state-level digital tax seeks to standardize tax treatment across various software delivery platforms.
Proposed measures include Tulare Measure A, which would raise the local sales tax from 8.25% to 9.25%, and Fowler Measure T, expected to generate $300,000 annually. Statewide, 61 local tax increases are on the ballot.
The players
California
This is the state government currently proposing a legislative expansion of the sales tax base to include digital products.
The details
Local initiatives such as Fresno County Measure S and Dinuba Measure S aim to secure long-term funding for community infrastructure. Under the new SB 122 law, downloaded software and software-as-a-service subscriptions will become taxable, though custom software remains exempt.
Timeline
November 3, 2026: Voters consider local sales tax measures.
January 1, 2027: SB 122 makes digital products taxable.
June 30, 2027: Measure C transportation tax expires.
July 1, 2027: Fresno Measure D tax begins.
Macro View
This move aligns with broader shifts in state tax policy as jurisdictions seek to modernize revenue collection in a digital economy. California is following a growing trend of states attempting to capture revenue from software-as-a-service and electronic downloads.
Residents in cities like Tulare and Fowler may see direct increases in the cost of retail goods if local measures pass in November. Additionally, consumers statewide should prepare for potential price changes on digital software subscriptions starting in early 2027.
The takeaway
Voters should carefully review the specific local measures on their ballots to understand how they will affect their personal household budgets. Consumers who rely on digital services should also track the rollout of SB 122 as it may alter the cost of software subscriptions in the near future.
Further reading
For more information on state fiscal policies, visit Taxes.
Source note: This article includes information reported by The Business Journal.
Live Poll
Do you support applying sales taxes to software subscriptions and digital products in your state?
