Revenue and Taxation Code section 6016.1
(a)
“Digital product” means prewritten computer software transferred on tangible storage media, transferred electronically, or accessed remotely.(b)
“Digital product” does not include any of the following:(1)
A digital asset.(2)
A digital audio work.(3)
A digital audiovisual work.(4)
A digital book.(5)
Digital infrastructure.(6)
A digital video game product.(7)
A digital visual work.(c)
As used in this section:(1)
“Computer” has the meaning defined in Section 6010.9.(2)
“Computer software” has the meaning defined in Section 6010.9.(3)
“Custom computer software” has the meaning defined in Section 6010.9.(4)
“Digital asset” means a digital representation of value that is recorded on a cryptographically secured distributed ledger or any similar technology, as specified by the Secretary of the Treasury of the United States.(5)
“Digital audio work” means a work that results from the fixation of a series of musical, spoken, or other sounds, including a ringtone or music, that is transferred electronically or accessed remotely.(6)
“Digital audiovisual work” means a series of related images that when shown in succession impart an impression of motion, together with accompanying sounds, if any, that is transferred electronically or accessed remotely.(7)
“Digital book” means a work that is generally recognized in the ordinary and usual sense as a book that is transferred electronically or accessed remotely.(8)
“Digital infrastructure” means a cloud-based service provided remotely that allows a user to create, deploy, scale, or run the user’s own computer software on the service provider’s digital platform without managing, operating, or maintaining the user’s own infrastructure, including any hardware, software, networks, and facilities that are required to allow the user to create, deploy, scale, or run the user’s own computer software, required to complete the task.(9)
“Digital video game product” means an electronic, interactive game played for entertainment purposes by manipulating an input device to produce visual feedback on a screen that is transferred electronically or accessed remotely.(10)
“Digital visual work” means artwork created by using computer hardware and software processes which results in artwork in a digital format that is transferred electronically or accessed remotely.(11)
“Prewritten computer software” means computer software that is held or existing for general or repeated sale or lease, even if the prewritten software was initially developed on a custom basis or for in-house use, including the combination of two or more prewritten programs.(d)
This section shall become operative on January 1, 2027.
Source:
Section 6016.1, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC§ionNum=6016.1. (updated Jun. 29, 2026; accessed Jul. 20, 2026).
