Are computer software contracts taxable?
Effective for sales or renewal on or after October 1, 2005, Code Sections 12-36-910(B) and 12-36-1310(B) impose the sales and use tax on the: gross proceeds accruing or proceeding from the sale or renewal of warranty, maintenance, or similar service contracts for tangible personal property, whether or not such contracts are purchased in conjunction with the sale of tangible personal property. As such, a charge for the sales or renewal of a warranty, maintenance, or similar service contract for computer software what was delivered in tangible form (tangible personal property) is subject to the sales and use tax, whether or not such contract was purchased in conjunction with the sale of computer software that was delivered in tangible form. A charge for the sale or renewal of a warranty, maintenance, or similar service contract for comptuer software that was delivered solely by electronic means is not subject to the sales and use tax, provided no part of the software (including back-up d
