Is tangible personal property, such as a computer system, taxable?
The retail sale, lease or rental of computer hardware or any other tangible products is generally subject to the sales tax. When selling tangible personal property to a telephone utility, the application of the tax will depend upon how the property will be used by the utility, as previously explained in the answer given for Question 8. Accordingly, the Taxpayer must use reasonable care and judgement in applying the exemption to its telephone utility customers as set out in VR 630-10-20. Question 12: Taxpayer’s services include CABS and Toll processing and client tape backup. Is the processing of client data, usually received on computer tapes, taxable? Charges for data processing services, such as billing services, are generally nontaxable. Instead, as the provider of the service, the Taxpayer is liable for the tax on the cost price of tangible personal property used or consumed in providing its data processing services. Any charges for duplicate copies of billing statements, tapes or
