California Senate Bill 122 (SB 122), signed into law by Governor Newsom on June 29, 2026, expands the definition of tangible personal property for sales and use tax purposes to include certain digital products, including prewritten computer software delivered electronically or accessed remotely, effective January 1, 2027. For more background, see this White Paper. On September 1, 2026, the California Department of Tax and Fee Administration (CDTFA) issued draft emergency regulations (draft regulations) to implement SB 122. These emergency regulations remain in draft form and are subject to change before adoption. Businesses should monitor developments and begin implementation planning now.

Download Whitepaper