The sale, lease, or license of canned computer software in Wisconsin is subject to Wisconsin sales or use tax, regardless of how it is delivered to the customer (tangibly vs. electronically). For the tax to apply, however, the canned software must be situated in Wisconsin when used by the customer. Software located on a server outside Wisconsin (customer uses the software at the physical location of the server outside the state) is not subject to the Wisconsin tax. Customized computer software is not taxable. The Wisconsin Department of Revenue has developed a list of examples of taxable and nontaxable sales of computer software. (Frequently Asked Questions, Wisconsin Department of Revenue)