California Assembly bill 2492 AB 2492

Assembly Bill 2492: A Gross Receipts Tax on Data and Internet Access Services in California

Assembly Bill 2492 (AB 2492) is a bill that would impose a gross receipts tax on companies that provide data and internet access services in California. The tax would be calculated as a percentage of the company's gross receipts from these services, and the rate would be determined by the amount of data that the company collects and stores.

The bill was introduced by Assemblymember Kevin McCarty in January 2023 and is currently in the Assembly Committee on Revenue and Taxation.

Pros of AB 2492

There are a number of potential benefits to AB 2492. First, the tax would generate revenue that could be used to fund important state programs. Second, the tax would help to level the playing field between large and small businesses. Third, the tax would ensure that companies that collect and store data about Californians are contributing to the state's tax revenue.

Cons of AB 2492

However, there are also some potential drawbacks to AB 2492. First, the tax could be a burden on businesses and could ultimately be passed on to consumers in the form of higher prices. Second, the tax could be difficult to administer and could create uncertainty for businesses. Third, the tax could stifle innovation in the data and internet access industries.

Conclusion

Overall, there are both potential benefits and drawbacks to AB 2492. It is important to weigh these carefully before deciding whether or not to support the bill.