DAR File No. 32016

Tax Commission, Auditing

R865-19S-92

Computer software and Other Related Transactions Pursuant to Utah Code Ann. Section 59-12-103

NOTICE OF PROPOSED RULE

DAR File No.: 32016
Filed: 10/09/2008, 01:09
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

Amendment is necessary because of statutory changes occurring from H.B. 206 (2008). (DAR NOTE: H.B. 206 (2008) is found at Chapter 384, Laws of Utah 2008, and will be effective 01/01/2009.)

Summary of the rule or change:

The proposed amendment deletes language that has been placed in statute.

State statutory or constitutional authorization for this rule:

Section 59-12-103

Anticipated cost or savings to:

the state budget:

None--Any fiscal impacts were considered in H.B. 206 (2008).

local governments:

None--Any fiscal impacts were considered in H.B. 206 (2008).

small businesses and persons other than businesses:

None--Any fiscal impacts were considered in H.B. 206 (2008).

Compliance costs for affected persons:

None--The deleted language now appears in statute.

Comments by the department head on the fiscal impact the rule may have on businesses:

There are no anticipated fiscal impact as those would have been considered with H.B. 206 (2008). D'Arcy Dixon, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Tax Commission
Auditing
210 N 1950 W
SALT LAKE CITY UT 84134

Direct questions regarding this rule to:

Cheryl Lee at the above address, by phone at 801-297-3900, by FAX at 801-297-3919, or by Internet E-mail at clee@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

12/01/2008

This rule may become effective on:

01/01/2009

Authorized by:

D'Arcy Dixon, Commissioner

R865. Tax Commission, Auditing.

R865-19S. Sales and Use Tax.

R865-19S-92. Computer Software and Other Related Transactions Pursuant to Utah Code Ann. Section 59-12-103.

[A.](1) "Computer-generated output" means the microfiche, microfilm, paper, discs, tapes, molds, or other tangible personal property generated by a computer.

[B. The sale, rental or lease of prewritten computer software constitutes a sale of tangible personal property and is subject to the sales or use tax regardless of the form in which the software is purchased or transferred.

C.](2) The sale, rental or lease of custom computer software constitutes a sale of personal services and is exempt from the sales or use tax, regardless of the form in which the software is purchased or transferred. Charges for services such as software maintenance, consultation in connection with a sale or lease, enhancements, or upgrading of custom software are not taxable.

[D.](3) The sale of computer generated output is subject to the sales or use tax if the primary object of the sale is the output and not the services rendered in producing the output.

 

KEY: charities, tax exemptions, religious activities, sales tax

Date of Enactment or Last Substantive Amendment: [August 18, 2008]2009

Notice of Continuation: March 13, 2007

Authorizing, and Implemented or Interpreted Law: 59-12-103