2013 Idaho Statutes
Title 63 - REVENUE AND TAXATION
Chapter 36 - SALES TAX
Section 63-3616 - TANGIBLE PERSONAL PROPERTY.

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 that is not a custom computer program and is not application software accessed over the internet or through wireless media.

(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.

(iii) As used in this section, the term "application software accessed over the internet or through wireless media" means the right to use computer software where the software is accessed over the internet or through wireless media from a location owned or maintained by the seller or an agent of the seller and is not loaded and left at the user's location. The term does not include such remotely accessed computer software if the primary purpose of such computer software is for entertainment use, or if the vendor of that computer software offers for sale, in a storage media or by an electronic download, to the user's computer or server, and either directly or through wholesale or retail channels, that same computer software or comparable computer software that performs the same functions.

(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.

History:

[63-3616, added 1965, ch. 195, sec. 16, p. 408; am. 1986, ch. 192, sec. 1, p. 488; am. 1993, ch. 26, sec. 2, p. 88; am. 1998, ch. 50, sec. 1, p. 201; am. 2013, ch. 271, sec. 1, p. 707.]