Tax Type
Retail Sales and Use Tax
Description
Web site design and creation
Topic
Taxability of Persons and Transactions
Date Issued
08-29-2000
August 29, 2000
Re: Request for Ruling: Retail Sales and Use Tax
Dear ****
This is in reply to your letter of August 15, 2000, in which you request a ruling on the application of the retail sales and use tax to charges for designing and creating an Internet web site.
The department has previously ruled that the charges associated with web site or homepage production or design are not taxable. See Public Document (P.D.) 97-239 (5/23/97), copy enclosed. In the factual situation presented in that case, the design of the web site was presented to the client in tangible form. The department determined that the tangible form of the design presented to the client represented the review phase of the design process, and was not considered to be a sale of tangible personal property. Once the client approved the design, the taxpayer registered the design with a site provider and transferred the design electronically. In addition, the registration or placement of the web site was not a taxable transaction for retail sales and use tax purposes, as there was no exchange of tangible personal property.
If you have any questions about this response or the enclosed document, you may contact of the Office of Tax Policy at *****.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/30384F
Re: Request for Ruling: Retail Sales and Use Tax
Dear ****
This is in reply to your letter of August 15, 2000, in which you request a ruling on the application of the retail sales and use tax to charges for designing and creating an Internet web site.
The department has previously ruled that the charges associated with web site or homepage production or design are not taxable. See Public Document (P.D.) 97-239 (5/23/97), copy enclosed. In the factual situation presented in that case, the design of the web site was presented to the client in tangible form. The department determined that the tangible form of the design presented to the client represented the review phase of the design process, and was not considered to be a sale of tangible personal property. Once the client approved the design, the taxpayer registered the design with a site provider and transferred the design electronically. In addition, the registration or placement of the web site was not a taxable transaction for retail sales and use tax purposes, as there was no exchange of tangible personal property.
If you have any questions about this response or the enclosed document, you may contact of the Office of Tax Policy at *****.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/30384F
Related Documents
Rulings of the Tax Commissioner