Section 26-52-304 - Tax levied on sales of computer software and maintenance of computer hardware - Definitions(a) The excise tax levied by this chapter and by any act supplemental thereto, is levied on gross receipts or gross proceeds received from the following: (1)(A) Sales of computer software, including prewritten computer software, which shall be taxed as sales of tangible personal property.(B) As used in this section: (i) "Computer" means an electronic device that accepts information in digital or similar form and manipulates it for a result based on a sequence of instructions;(ii)(a) "Computer software" means a set of coded instructions designed to cause a computer or automatic data processing equipment to perform a task.(b) "Computer software" does not include software that is delivered electronically or by load and leave;(iii) "Computer software maintenance contract" means a contract that obligates a vendor of computer software to provide a customer with future updates or upgrades to computer software or support services with respect to computer software, or both;(iv) "Delivered electronically" means delivered to the purchaser by means other than tangible storage media;(v) "Electronic" means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities;(vi) "Load and leave" means delivery to the purchaser by use of a tangible storage media in which the tangible storage media is not physically transferred to the purchaser; and(vii) "Prewritten computer software" means computer software, including prewritten upgrades, that is not designed and developed by the author or other creator to the specifications of a specific purchaser; and(2) Service of repairing or maintaining computer equipment or hardware in any form.(b) The gross receipts or gross proceeds derived from the sale of a computer software maintenance contract are not taxable.Acts 1983 (1st Ex. Sess.), No. 88, §§ 1, 3; A.S.A. 1947, §§ 84-1903.5, 84-1903.5n; Acts 2007, No. 181, § 12; 2009, No. 384, § 4; 2009, No. 655, § 13; 2011, No. 291, § 10.