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2019 Arkansas Code
Title 26 - Taxation
Subtitle 5 - State Taxes
Chapter 52 - Gross Receipts Tax
Subchapter 3 - Imposition of Tax
§ 26-52-304. Tax Levied on Sales of Computer Software and Maintenance of Computer Hardware

Universal Citation: AR Code § 26-52-304 (2019)
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  • (a) The excise tax levied by this chapter and by any act supplemental thereto, is levied on gross receipts or gross proceeds received from the following:

    • (1)

      • (A) Sales of computer software, including prewritten computer software, which shall be taxed as sales of tangible personal property.

      • (B) As used in this section:

        • (i) “Computer” means an electronic device that accepts information in digital or similar form and manipulates it for a result based on a sequence of instructions;

        • (ii)

          • (a) “Computer software” means a set of coded instructions designed to cause a computer or automatic data processing equipment to perform a task.

          • (b) “Computer software” does not include software that is delivered electronically or by load and leave;

        • (iii) “Computer software maintenance contract” means a contract that obligates a vendor of computer software to provide a customer with future updates or upgrades to computer software or support services with respect to computer software, or both;

        • (iv) “Delivered electronically” means delivered to the purchaser by means other than tangible storage media;

        • (v) “Electronic” means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities;

        • (vi) “Load and leave” means delivery to the purchaser by use of a tangible storage media in which the tangible storage media is not physically transferred to the purchaser; and

        • (vii) “Prewritten computer software” means computer software, including prewritten upgrades, that is not designed and developed by the author or other creator to the specifications of a specific purchaser; and

    • (2) Service of repairing or maintaining computer equipment or hardware in any form.

  • (b) The gross receipts or gross proceeds derived from the sale of a computer software maintenance contract are not taxable.

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