Your sale of electronic data products such as software, data, digital books (eBooks), mobile applications, and digital images is generally not taxable when you transmit the data to your customer over the Internet or by modem. However, if you purchase TurboTax as a download, California will not assess any sales tax on the transaction. As a CD, the sales tax will be $4.81, so you will already be saving $1.31. You can purchase TurboTax as a CD or as a download. However, if you look at the footnote on the Costco price tag, it says, “Sales Tax on the pre-rebate price.” At the local Costco, a sales tax rate of 8.75% translates into a sales tax of $6.12. At first glance, the price may seem to be the same. Amazon was selling TurboTax Premier for $54.99.
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