CA Gov't Code Section 8880.68

Except as provided in subdivision (d), no state or local taxes shall be imposed upon the following:

(a)

The sale of lottery tickets or shares of the lottery.

(b)

Any prize awarded by the lottery.

(c)

Any amount received by a prizewinner pursuant to an assignment under Section 8880.325.

(d)

This section does not prohibit the imposition of property taxes or license fees for any noncash prize that is awarded by the lottery.