In H.B. 7030, Section 12-408(1) (E) has been amended and, effective 7/1/97, the sales and use tax on computer and data processing services will be phased out. For an update on this news item, click here. The phase out will be over a six year period with the phase out tax rates as follows:
7/1/97 through 6/30/98 – 5%
7/1/98 through 6/30/99 – 4%
7/1/99 through 6/30/00 – 3%
7/1/00 through 6/30/01 – 2%
7/1/01 through 6/30/02 – 1%
7/1/02 and thereafter – Exempt