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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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S


515.0000 Service Enterprises Generally—Regulation 1501

Annotation 515.0450

(c) Original Manuscripts, Plans, Etc.


515.0450 Developmental Software. Before a software company, who is in the business of selling software for resale, actually mass produces a product, the company does extensive developing by sending early versions of the software to approximately 2,000 persons at no charge to the recipient. The recipients use the free software and point out any "bugs" to the software company.

Tax applies to the sale of the disks, the disk duplicating services and the supporting manuals to the software company. 5/3/93.