The State of Indiana recently issued a Letter Ruling indicating that optional warranties and maintenance agreements that only contain the intangible right to have property supplied and there is no certainty that property will be supplied are not subject to sales or use tax. The taxpayer involved in the Letter Ruling is a manufacturer who purchased several maintenance agreements including equipment repair, software support, and telephone support. Since there was no true definite possibility that property would be supplied in accordance with the agreements, the State agreed with the taxpayer that the agreements were not subject to sales or use tax. In regards to the taxpayer’s purchase of cutting software, the Letter Ruling discussed the fact that since the taxpayer was utilizing the software to instruct its manufacturing machinery on cutting techniques, the software was not directly involved in the production of a product for sale. Therefore, the cutting software was subject to sales and use tax. (Indiana Department of Revenue, Letter Ruling No. 03-0108, February 1, 2005)