Under current law, for purposes of imposing sales tax, a retail sale includes a sale of specified digital products or other digital products to an end user, regardless of rights of permanent use and whether rights of use are conditioned on payment. “Specified digital products” are digital audio works, digital audiovisual works, and digital books, any of which is transferred electronically. “Other digital products” are greeting cards and online or electronic video games.
This bill specifies that an “end user” does not include a person, including the owner or operator of a jukebox or other similar device, that charges customers for access to specified digital products or other digital products and who receives a product transferred electronically under a contract for further commercial broadcast or transmission to another person.
Effective for sales and purchases made after June 30, 2017.