S.D. Admin. R. 64:06:02:79
The sale of a prewritten computer program is the sale of tangible personal property subject to sales tax. The term, prewritten computer software, includes any prewritten upgrade, which is not designed and developed by the author or other creator to the specifications of a specific purchaser. The combining of two or more prewritten computer software programs or prewritten portions thereof does not cause the combination to be other than prewritten computer software. Prewritten computer software also includes software designed and developed by the author or other creator to the specifications of a specific purchaser when it is sold to another person. If a person modifies or enhances prewritten computer software of which the person is not the author or creator, the person is deemed to be the author or creator only of such person's modifications or enhancements. Prewritten computer software or a prewritten portion thereof that is modified or enhanced to any degree, when such modification or enhancement is designed and developed to the specifications of a specific purchaser, remains prewritten computer software; unless there is a reasonable, separately stated charge or an invoice or other statement of the price given to the purchaser for such modification or enhancement, then such modification or enhancement does not constitute prewritten computer software.
S.D. Admin. R. 64:06:02:79
General Authority: SDCL 10-45-47.1(3).
Law Implemented: SDCL 10-45-2, 10-45-4, 10-45-5.2.