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          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.


          Source: 2 SDR 40, effective December 8, 1975; 7 SDR 80, effective February 22, 1981; 12 SDR 111, effective January 12, 1986; 13 SDR 129, 13 SDR 134, effective July 1, 1987; 21 SDR 219, effective July 1, 1995; 31 SDR 214, effective July 6, 2005; 35 SDR 48, effective September 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.


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