Rev. & Tax. Code, § 6372.1 · Article 1. General Exemptions
Rev. & Tax. Code, § 6372.1
Text — As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
(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.
Notes and commentary — not statutory text
History
Added by Stats. 2026, Ch. 23, Sec. 17. (SB 122) Effective June 29, 2026. Operative January 1, 2027, by its own provisions.
Source of truth
- Edition
- As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
- Official file
- https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC§ionNum=6372.1.
- Text hash
- sha256 685d61101418f73c8cd205bd2a96f5b607d65bff6309188b9e1138b3eeaffb09
- Composed by
- compose_ca.py 2026-10-22: the Legislative Counsel's CAML content files read by a tokenizer (caml_readers.reader_a); an independent xml.etree reading (caml_readers.reader_b) agrees on every section
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.