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Arizona Amends Computer Hardware and Software Regulation.


Software/Hi-Tech

The Department of Revenue has amended a regulation to clarify the taxability of sales of computer hardware or software. The modification clarifies that (1) gross receipts derived from changes of prewritten software for the specific use of an individual customer are not subject to tax if separately stated on the sales invoice and in the seller 's records; and (2) the method used to sell prewritten computer software to customers is irrelevant for taxation purposes. Some methods used to sell include using a tangible object such as a computer disk, CD-ROM, or through digital means (Arizona Regulation, R 15-5-154, amended September 10, 2005).

(02/09/2006)
(Archived)
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