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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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I


325.0000 Interstate and Foreign Commerce—Regulation 1620

Annotation 325.0012.350

(a) In General—Shipments Into California from Points Outside State


325.0012.350 Duplicate Copy of Software Source Code. Database software purchased out of state is to be located and used in New York for at least 100 days after its purchase. The purchaser made a duplicate copy of the source code in New York on new blank media and delivered this duplicate copy to an escrow agent in California before 90 days elapsed from the date of purchase of the original.

The delivery of the duplicate copy of the source code to an escrow agent in California does not affect the taxability of the original sale of the tangible media containing the original source code. When the duplicate copy of the source code is brought into California within 90 days after the blank media was purchased by the purchaser of the database, then the cost of that blank media plus the outside cost, if any, of copying the source code onto that media (but not the cost or value of the source code itself) would be subject to California use tax. 1/3/95.