You are correct that this language does not apply to you; this is for product sales. If you did not ship any tangible items to CA customers, indicate that with zero entries, and you will then be prompted to enter your CA-source intangible property (filmmaking) sales. Definitions from the CA Franchise Tax Board page, Help with apportionment and allocation:
Sales of tangible personal property
Sales of tangible personal property are in California if at least one of the following applies:
- The property is delivered or shipped to a purchaser in California
- The property is shipped from California to a state where the taxpayer is not taxable or the purchaser is the U.S. government
Sales of other than tangible personal property
For taxable years beginning on or after January 1, 2013, sales of other than tangible personal property are assigned to California sales factor based on market assignment.
Under market assignment, sales of other than tangible personal property are assigned to the California sales factor numerator if:
- Sales from services are in California to the extent the purchaser of the service received the benefit of the services in California
- Sales from intangible property are in California to the extent the property is used in California. In the case of marketable securities, sales are in California if the customer is in California
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