Social media platforms: advertising: tax.
Vote required
Two Thirds
Fiscal committee
No
Appropriation
No
Current location
Revenue and Taxation
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill proposes a new tax on social media platforms in California, targeting their revenue from programmatic advertising. Starting in 2026, platforms would pay a percentage – currently unspecified – of their annual gross receipts from these ads. The collected funds would be deposited into the Social Media Safety Trust Fund, which would then be used to support education, mental health care, research, and social services related to addressing harms associated with social media use, particularly among adolescents. The tax would be in effect until January 1, 2031.
Key provisions
- Imposes a tax on social media platform providers based on programmatic advertising revenue.
- The tax rate is currently unspecified but is set at a percentage of annual gross receipts.
- Creates the Social Media Safety Trust Fund to collect and manage the tax revenue.
- Allocates funds from the trust fund to education, mental health care, research and development, and social services.
- Requires administration of the tax under the Fee Collection Procedures Law.
- The tax applies to advertising originating in California or targeted at California residents.
- Exemptions are provided for nonprofit organizations and small-scale advertisers.
- The tax is set to expire on January 1, 2031.
Who is affected
- Social media platform providers
- Advertisers on social media platforms
- California residents (particularly adolescents)
Bill text
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Sponsors
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1 on record
Primary sponsor
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