US Laws, Codes, Statutes & Cases

                                  TITLE  63
                             REVENUE AND TAXATION
                                  CHAPTER 36
                                  SALES TAX
    63-3616.  TANGIBLE PERSONAL PROPERTY. (a) The term "tangible personal
property" means personal property which may be seen, weighed, measured, felt
or touched, or which is in any other manner perceptible to the senses.
    (b)  The term "tangible personal property" includes any computer software
which is not a custom computer program.
    (i)   As used in this subsection, the term "computer software" means any
    computer program, part of a program or any sequence of instructions for
    automatic data processing equipment or information stored in an electronic
    medium. Computer software is deemed to be tangible personal property for
    purposes of this chapter regardless of the method by which the title,
    possession or right to use the software is transferred to the user.
    (ii)  As used in this subsection, the term "custom computer program" means
    any computer software (as defined in this subsection) which is written or
    prepared exclusively for a customer and includes those services
    represented by separately stated charges for the modification of existing
    prewritten programs when the modifications are written or prepared
    exclusively for a customer. The term does not include a "canned" or
    prewritten program which is held or existing for general or repeated sale,
    lease or license, even if the program was initially developed on a custom
    basis or for in-house use. Modification to an existing prewritten program
    to meet the customer's needs is custom computer programming only to the
    extent of the modification, and only to the extent that the actual amount
    charged for the modification is separately stated on invoices, statements,
    and other billing documents supplied to the purchaser.
    (c)  The term "tangible personal property" does not include advertising
space when sold to an advertiser or its agent by the publisher of the
newspaper or the magazine in which the advertisement is displayed or
circulated.