Tax Type
Retail Sales and Use Tax
Description
Computer programming services
Topic
Exemptions
Date Issued
11-09-1984
November 9, 1984
Re: Request for Ruling/Sales and Use Tax
Dear *******
This will reply to your letter of September 18, 1984 in which you question the inclusion of certain charges to ***** in a recent audit of *****.
You relate in your letter that ***** purchased computer programming services only from *****. The transactions in question involved representatives of ***** coming to the offices of ***** and making programming changes to payroll tax programs belonging to the newspaper. ***** did not bring to ***** any tangible personal property nor did it leave any tangible personal property upon the completion of its services.
If the above description is accurate and ***** only used the newspaper's hardware and software in providing its services, I would find the transactions in question to be nontaxable as ***** was merely providing personal services. Accordingly, ***** may seek a refund of tax paid on such transactions from either ***** or the department directly. In order to verify the nature of the transactions and facilitate the refund of taxes paid, it would be helpful to obtain copies of applicable invoices with a notation from ***** that the tax was paid to the department on these transactions.
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner