California Voters Will Face 61 Local Tax Measures
Residents across the state will vote on local sales tax hikes this November, while a new digital tax takes effect in 2027.
Updated on Sept. 29, 2026 in Taxes
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On November 3, 2026, California voters will consider 61 proposed local sales tax increases, ranging from city-level service levies to county-wide transportation funding. Residents should prepare for potential changes to their local tax rates starting as early as 2027.
Why it matters
These local measures aim to bolster funding for essential city services like public safety and road maintenance, directly impacting the total sales tax households pay at checkout. Concurrently, a state-wide legislative change will soon broaden the tax base to include digital products, shifting how software costs are handled for personal budgets.
Proposed measures include Tulare's Measure A, which seeks to raise the sales tax rate from 8.25% to 9.25%, and others like Fowler's Measure T, which targets $300,000 in annual revenue. These local actions coincide with SB 122, which will subject most downloaded software and subscription-based digital services to state sales tax starting January 1, 2027.
The players
California
The state government responsible for enacting tax policy and overseeing statewide fiscal legislation like SB 122.
The details
Local sales tax measures appear on ballots to fund specific city projects or transportation infrastructure, often replacing or renewing expiring levies. Once approved, these increases are typically collected at the point of sale, effectively raising the price of taxable goods for consumers. Separately, SB 122 creates a uniform tax treatment for software, meaning that while prewritten software on physical media is already taxed, downloaded versions and software-as-a-service subscriptions will soon carry the same sales tax burden.
Timeline
November 3, 2026: Voters decide on local sales tax measures.
January 1, 2027: SB 122 takes effect, taxing digital software products.
June 30, 2027: Existing Fresno Measure C transportation tax expires.
July 1, 2027: Fresno Measure D tax begins.
Money Landscape
These ballot initiatives and the new digital tax law mark a significant shift in the state's revenue-collection landscape. By broadening the tax base to digital services and seeking local funding via ballot measures, California is adjusting both its local and state-level reliance on consumption taxes.
Households should review local ballot information to identify if new tax measures will increase the cost of goods in their specific city or county. Additionally, budget for potential price increases on digital software subscriptions and downloads beginning in 2027, as these costs will likely include state sales tax.
The takeaway
The upcoming election provides an opportunity to weigh in on how your local community funds services like infrastructure and safety. Consider reviewing your subscription services now to understand how state-wide digital tax changes might impact your recurring software costs early next year.
Further reading
For more information on how current policies affect your take-home pay and living expenses, visit Taxes.
Source note: This article includes information reported by The Business Journal.
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Do you support applying sales taxes to software subscriptions and digital products in your state?
