AB-796 • 2026

Social media platforms: advertising: tax.

Crime Education Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Lowenthal
Last action: 2026-02-02
Official status: From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
Effective date: Not listed

Plain English Breakdown

The term 'programmatic advertising' is used in the candidate explanation, but it's unclear if this is a defined term or just an example. The official summary does not specify programmatic advertising.

Tax on Social Media Advertising

AB-796 imposes a tax on social media platforms based on advertising revenue from January 1, 2026 to December 31, 2030, with funds allocated to various programs.

What This Bill Does

Imposes a new tax on social media platform providers for advertisements sold between January 1, 2026 and December 31, 2030.
Requires the California Department of Tax and Fee Administration to manage this tax.
Creates the Social Media Safety Trust Fund where all collected taxes will be kept.
Allocates money from the fund to different accounts for education, mental health care, research and development, and social services.
Repeals the new tax laws on January 1, 2031.

Who It Names or Affects

Social media platform providers who sell advertisements in California.
The California Department of Tax and Fee Administration which will manage the tax collection process.
People or organizations that benefit from funds allocated to education, mental health care, research and development, and social services.

Terms To Know

Social Media Platform Provider: A company that operates a platform where users can share information and interact with each other through the internet.

Limits and Unknowns

The exact percentage of tax is not specified in the bill.
The bill does not provide details about how social media platforms will be defined for this tax.
The specific purposes and amounts allocated to each account within the Social Media Safety Trust Fund are not detailed.

Bill History

2026-02-02 California Legislative Information
From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
2026-01-31 California Legislative Information
Died pursuant to Art. IV, Sec. 10(c) of the Constitution.
2026-01-12 California Legislative Information
In committee: Held under submission.
2026-01-12 California Legislative Information
In committee: Set, second hearing. Referred to REV. & TAX. suspense file.
2026-01-06 California Legislative Information
Re-referred to Com. on REV. & TAX.
2026-01-05 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.
2025-04-28 California Legislative Information
In committee: Set, first hearing. Hearing canceled at the request of author.
2025-04-23 California Legislative Information
From committee: Do pass and re-refer to Com. on REV. & TAX. (Ayes 8. Noes 4.) (April 22). Re-referred to Com. on REV. & TAX.
2025-04-01 California Legislative Information
Re-referred to Com. on P. & C.P.
2025-03-28 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on P. & C.P. Read second time and amended.
2025-03-28 California Legislative Information
Referred to Coms. on P. & C.P. and REV. & TAX.
2025-02-19 California Legislative Information
From printer. May be heard in committee March 21.
2025-02-18 California Legislative Information
Read first time. To print.

Official Summary Text

AB 796, as amended, Lowenthal.
Social media platforms: advertising: tax.
Existing law imposes various taxes, including a tax on income, the gross receipts from the sale of tangible personal property, and real property.
This bill
would, for taxable years beginning on or after January 1, 2026, and before January 1, 2031,
would
impose a tax on a social media platform provider, as defined, equal to an unspecified percentage of the annual gross receipts derived from the purchase of
advertisements
programmatic advertising
for distribution on
the provider’s social media platform, as provided.
The bill would require the California Department of Tax and Fee Administration to administer the tax pursuant to the Fee Collection Procedures Law, the violation of which is a crime. By extending the application of the Fee Collection Procedures Law, this bill would impose a state-mandated local program.
This bill would create the Social Media Safety Trust Fund within the State Treasury and would require all moneys raised pursuant to these taxes be deposited into the fund. The bill would establish various accounts within the fund and would allocate moneys into those accounts for expenditure according to specified purposes, including an Education Account, Mental Health Care Account, Research and Development Account, and Social Services Account. The bill would continuously appropriate the moneys in the fund to
administer those provisions.
The bill would repeal these provisions on January 1, 2031.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.

Current Bill Text

Read the full stored bill text

Download Bill PDF