Revenue and Taxation Code § 6010.5

6010.5.

(a) Subject to subdivision (b), for the purposes of this part, the place of the sale or purchase of tangible personal property is the place where the property is physically located at the time the act constituting the sale or purchase, as defined in this part, takes place.

(b) (1) For a digital product transferred on tangible storage media, the place of the sale or purchase of that digital product shall be the place where the tangible storage media is physically located at the time the act constituting the sale or purchase takes place.

(2) If the sale or purchase of a digital product that is not transferred on tangible storage media is an in-person sale or purchase at a location of the seller for which the seller is required to hold a seller’s permit pursuant to Section 6066, the place of the sale or purchase of the digital product transferred electronically or accessed remotely shall be the seller’s place of business in this state where the in-person sale or purchase occurred.

(3) (A) If the sale or purchase of a digital product that is not transferred on tangible storage media is not an in-person sale or purchase, the place of the sale or purchase of a digital product transferred electronically or accessed remotely shall be deemed to be the purchaser’s known address in this state shown in the seller’s records maintained in good faith in the ordinary course of business.

(B) If the purchaser provided more than one address to the seller during the consummation of the sale or purchase, the purchaser’s known address shall be determined from those addresses in this state in the following order of priority:

(i) The purchaser’s billing address.

(ii) The purchaser’s shipping or delivery address.

(iii) The mailing address associated with the purchaser’s payment instrument.

(iv) The purchaser’s mailing address.

(C) If a purchaser does not provide an address to the seller during the consummation of the sale or purchase, the purchaser’s known address in this state shall be determined from the addresses in this state the purchaser previously provided to the seller in the following order of priority:

(i) The purchaser’s most recent billing address.

(ii) The purchaser’s most recent shipping or delivery address.

(iii) The purchaser’s most recent mailing address associated with the purchaser’s payment instrument.

(iv) The purchaser’s most recent mailing address.

(4) If neither paragraph (2) or (3) apply, the place of the sale or purchase of a digital product transferred electronically or accessed remotely shall be deemed to be outside of this state.

(c) The amendments made to this section by the act adding this subdivision shall become operative on January 1, 2027.