Rule 64:06:02:78 Computer services -- Software.

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64:06:02:78. Computer services -- Software. The gross\r\nreceipts from the sale of computer software, technical services and attendant\r\nappliances, equipment, and facilities are subject to the retail occupational\r\nsales tax.

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A computer is an electronic device\r\nthat accepts information in digital or similar form and manipulates the\r\ninformation for a result based on a sequence of instructions. Computer software\r\nis a set of coded instructions designed to cause a computer or automatic data\r\nprocessing equipment to perform a task.

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The following are examples of the\r\nservices, appliances, equipment, and facilities which are taxable:

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(1) Tangible personal\r\nproperty or any product transferred electronically such as instructions,\r\ndirections, models, and layout sheets which are elements of technical service\r\ntransactions;

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(2) Designing and\r\nimplementing of computer systems;

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(3) Designing of storage\r\nand data retrieval systems;

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(4) Consulting services;

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(5) Feasibility studies;

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(6) Evaluation of bids;

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(7) Providing of technical\r\nassistance;

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(8) Fees or access charges\r\nfor access to data bases or networks; and

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(9) Fees or access charges\r\nfor access to software, programs, or computer systems.

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Source:\r\n2 SDR 40, effective December 8, 1975; 7 SDR 80, effective February 22, 1981; 12\r\nSDR 111, effective January 12, 1986; 13 SDR 129, 13 SDR 134, effective July 1,\r\n1987; 21 SDR 219, effective July 1, 1995; 31 SDR 214, effective July 6, 2005;\r\n35 SDR 48, effective September 8, 2008.

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General\r\nAuthority: SDCL 10-45-47.1(3).

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Law\r\nImplemented: SDCL 10-45-2, 10-45-2.4, 10-45-4, 10-45-5.2.

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