Cal. RTC § 6201.55 — California Code / Code rtc / Division 2 / Part 1 / Chapter 3 / Article 1 / Section 6201.55
Section 6201.55
Status: in_force

(a) Notwithstanding Section 6010.5 and except as provided in subdivision (c), a retailer is relieved of the obligation to collect use tax on the sale or purchase of a digital product that is transferred electronically or accessed remotely if the following applies:

(1) (A) The sales price of digital products purchased by a purchaser from a retailer that are transferred electronically or accessed remotely exceeds five million dollars ($5,000,000) in the aggregate in the current calendar year, or beginning January 1, 2028, in the current or the preceding calendar year.

(B) The purchaser shall be responsible for reporting and paying the use tax to the department pursuant to subdivision (b) on the transaction that caused the purchaser to exceed the threshold specified in subparagraph (A) and any adjustments made pursuant to paragraph (2).

(2) (A) On or before October 1, 2031, and every five years thereafter, the department shall multiply the amount specified in subparagraph (A) of paragraph (1) by the percentage increase in the California Consumer Price Index for All Urban Consumers between October 1, 2026, and the date of the calculation required by this subparagraph, and the result shall be rounded to the nearest one million dollars ($1,000,000) and shall be the applicable amount for the succeeding calendar year.

(B) The applicable amount computed pursuant to subparagraph (A) shall be operative beginning January 1 of the succeeding calendar year, and four years thereafter, as an adjustment of the amount specified in subparagraph (A) of paragraph (1).

(b) If a retailer is relieved from the obligation to collect use tax pursuant to subdivision (a), the purchaser shall self-assess and pay directly to the department taxes due under this part, Part 1.5 (commencing with Section 7200), and, if otherwise applicable, Part 1.6 (commencing with Section 7251) and Part 1.7 (commencing with Section 7280) on the transaction that caused the purchaser to exceed the threshold specified in subparagraph (A) of paragraph (1) of subdivision (a) and any adjustments made pursuant to paragraph (2) of subdivision (a).

(c) (1) If the department determines that it is necessary for the efficient administration of this part, the department may waive the requirement for the purchaser to self-assess and pay taxes due directly to the department under subdivision (b), and the retailer shall have an obligation to collect the use tax if the purchaser submits to the department a request for waiver in a form and manner prescribed by the department that includes all the places of business where the applicant expects to be a place of first use for purchases of digital products subject to subdivision (a).

(2) A purchaser that submits a request for waiver to the department under paragraph (1) shall also submit to the retailer all places of business where the purchaser expects to be a place of first use, which shall be considered the place of use for purposes of the use tax.

(d) A purchaser that is required to pay taxes to the department under subdivision (b) shall obtain a use tax direct payment permit pursuant to the procedures provided in Section 7051.3.

(e) This section shall become operative on January 1, 2027.