Revenue and Taxation Code section 6372
(a)
There are exempted from the taxes imposed by this part the gross receipts from the sale of, and the storage, use, or other consumption of, a digital product purchased solely for use outside of this state or in interstate or foreign commerce.(b)
(1)The burden of proving that the exemption created by this section applies is on the seller who makes the sale of a digital product, unless the seller takes from the purchaser a certificate to the effect that the property is purchased solely for use outside of this state or in interstate or foreign commerce in the form and manner prescribed by the department.(2)
The certificate described by this subdivision relieves the person selling the digital product from the duty of paying sales tax and collecting the use tax only if taken in good faith.(c)
If a purchaser certifies in writing to a seller that a purchase of a digital product is exempted by this section and uses the digital product in this state, the purchaser shall be liable for payment of sales tax as if the purchaser were a retailer making a retail sale of the property at the time of that use, and the cost of the property to the purchaser shall be deemed the gross receipts from that retail sale.(d)
(1)A purchaser that purchases a digital product for use in this state and a digital product solely for use outside of this state or in interstate or foreign commerce in the same transaction may issue an exemption certificate under this section for the purchase of any of those digital products eligible for the exemption and report and pay use tax on any of those digital products used in this state.(2)
A purchaser that issues an exemption certificate described in paragraph (1) shall report and pay use tax in a manner that reflects the use tax due on any of those digital products used in this state.(e)
(1)The department may set forth, authorize, or require alternative methods to calculate the sales or use tax due in this state that fairly reflects the sales or use tax due on any digital product sold or purchased for use in this state, including on licenses of digital products concurrently available for use in multiple locations.(2)
If an alternative method set forth, authorized, or required by the department pursuant to paragraph (1) is used to calculate the sales or use tax due, Section 6406 shall not apply.(3)
The department may prescribe any forms or exemption certificates, as necessary to administer this subdivision.(f)
The exemption created by this section does not apply to a sale or purchase of a digital product transferred on tangible storage media.(g)
This section shall become operative on January 1, 2027.
Source:
Section 6372, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC§ionNum=6372. (updated Jun. 29, 2026; accessed Jul. 20, 2026).
