DIVISION 2. OTHER TAXES 6001-61050›PART 1. SALES AND USE TAXES 6001-7176›CHAPTER 4. Exemptions 6351-6423›ARTICLE 1. General Exemptions 6351-6380
§ 6372.1
California Revenue and Taxation Code · 2026-09 edition · updated 2026-10-03 · California
(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 that represents a service provided in electronic form in which both of the following apply:
(1) The service primarily involves the application of human effort by the service provider.
(2) The human effort described in paragraph (1) originated after the customer requested the service.
(b) The exemption provided by this section does not apply to the sale or purchase of the right to use the provider’s computer software running on a cloud infrastructure or the right to access that software from various client devices through either a thin client interface, including a web browser, or a program interface.
(c) This section shall become operative on January 1, 2027.
(Added by Stats. 2026, Ch. 23, Sec. 17. (SB 122) Effective June 29, 2026. Operative January 1, 2027, by its own provisions.)
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