Digital products in California, such as e-books, music downloads, and software, are generally exempt from sales tax. However, certain circumstances can cause these digital products to become taxable:

1. Physical Media Delivery: If digital products are delivered on physical media (e.g., CDs, DVDs, USB drives), they may be classified as tangible personal property and thus taxable.

2. Bundling with Taxable Goods: When digital products are sold alongside taxable goods or services as a package deal, the entire bundle may become taxable.

3. Ancillary Services: If the purchase of a digital product includes additional services that are taxable (e.g., installation, customization), the overall sale may incur sales tax.

4. Specific Jurisdiction Rules: Certain local jurisdictions within California may have specific legislation that taxes particular digital goods, despite the general state exemption.

5. Business Models: Non-"true SaaS" models, where software is sold with significant physical components or in a manner that aligns more closely with traditional software sales, may be subject to tax.

Businesses must carefully evaluate their digital product delivery methods and bundling practices to determine tax obligations, ensuring compliance with California’s sales tax regulations.