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 120.1115

(b) Processing Customer-Furnished Information

120.1115 Analysis Services in Connection with Sales of Software. A taxpayer sells a complete package of software which includes the software system, a user's guide, periodic updates of the software, and an analysis of monthly data submitted to the taxpayer by the customer.

The software and the updates are tangible personal property and subject to tax. While the analysis of monthly data is the "processing of customer's furnished information," it remains part of the sales price of the software. These "services" represent services that are part of the sale of the software which the customer cannot acquire without also obtaining the "services." 6/24/91.