CALIFORNIA SALES AND USE TAX ON DIGITAL PRODUCTS UNDER SB 122 AND EMERGENCY REGULATIONS

NEW CALIFORNIA SALES/USE TAX ON DIGITAL PRODUCTS IS EFFECTIVE JANUARY 1, 2027

Under SB 122, effective January 1, 2027, prewritten computer software transferred electronically or accessed remotely (Digital Products) will be subject to California sales and use tax. Previously, tax applied only if the software was transferred on tangible storage media.

If you have questions regarding SB 122 and/or the CDTFA’s Emergency Regulations, please give us a call.