S.D. Admin. R. 64:06:02:78

Current through Register Vol. 50, page 162, June 24, 2024

Section 64:06:02:78 - Computer services - Software

The gross receipts from the sale of computer software, technical services and attendant appliances, equipment, and facilities are subject to the retail occupational sales tax.

A computer is an electronic device that accepts information in digital or similar form and manipulates the information for a result based on a sequence of instructions. Computer software is a set of coded instructions designed to cause a computer or automatic data processing equipment to perform a task.

The following are examples of the services, appliances, equipment, and facilities which are taxable:

(1) Tangible personal property or any product transferred electronically such as instructions, directions, models, and layout sheets which are elements of technical service transactions;

(2) Designing and implementing of computer systems;

(3) Designing of storage and data retrieval systems;

(4) Consulting services;

(5) Feasibility studies;

(6) Evaluation of bids;

(7) Providing of technical assistance;

(8) Fees or access charges for access to data bases or networks; and

(9) Fees or access charges for access to software, programs, or computer systems.

S.D. Admin. R. 64:06:02:78

2 SDR 40, effective 12/8/1975; 7 SDR 80, effective 2/22/1981; 12 SDR 111, effective 1/12/1986; 13 SDR 129, 13 SDR 134, effective 7/1/1987; 21 SDR 219, effective 7/1/1995; 31 SDR 214, effective 7/6/2005; 35 SDR 48, effective 9/8/2008.

General Authority: SDCL 10-45-47.1(3).

Law Implemented: SDCL 10-45-2, 10-45-2.4, 10-45-4, 10-45-5.2.