Revenue and Taxation Code section 6362.4

(a)

There are exempted from the taxes imposed by this part the gross receipts from the sale or lease of, and the storage, use, or other consumption in this state of, the right to reproduce or copy a digital product in order for copies of the digital product to be distributed for consideration to third parties, even if a copy of the digital product is transferred concurrently with the granting of that right. Any tangible storage media on which the digital product is transferred is merely incidental.

(b)

This section shall become operative on January 1, 2027.

Source: Section 6362.4, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=RTC§ionNum=6362.­4.­ (updated Jun. 29, 2026; accessed Jul. 20, 2026).

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Verified:
Jul. 20, 2026

§ 6362.4's source at ca​.gov