Laws, Regulations and Annotations


Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations

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120.0000 Automatic Data Processing Services and Equipment—Regulation 1502

Annotation 120.0048

(a) In General

120.0048 Computer Program Training Materials. A taxpayer develops a training course for a software manufacturer for a program not yet on the market. The course materials include a disk containing an instructor's guide, a participant workbook disk, a disk containing overheads, and a disk containing sample files. The taxpayer transfers all of its reproduction rights to the course materials to the software manufacturer. The software manufacturer edits the materials and markets the training course under its own name. The sale of the disks containing word processed disk copy is not subject to tax as it is similar to an author's original manuscript containing the expression of an idea. The sale of the graphic material, whether on disk or on hard copy, is comparable to the sale of artwork for reproduction or display and is, therefore, taxable. 6/14/90.