Skip to main content
Loading…
This section is included in your selections.

a. “Computer software” means any computer program, part of such a program, or any sequence of instructions for automatic data processing equipment. Computer software which is not “custom computer programming” is deemed to be tangible personal property for the purposes of this chapter, regardless of the method by which title, possession, or right to use the software is transferred to the user.

b. “Custom computer programming” means any computer software 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.

1. The term does not include a 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 for in-house, or for a single customer’s, use.

2. 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 customer. ((O)08-08, 04/16/2008)