Cal. Rev. & Tax. Code § 6372.1

# (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.