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Arkansas Code Title 26. Taxation § 26-52-304. Tax levied on sales of computer software and maintenance of computer hardware

Current as of March 28, 2024 | Updated by FindLaw Staff

(a) The excise tax levied by this chapter and by any act supplemental thereto, is levied on gross receipts or gross proceeds received from the following:

(1)(A) Sales of computer software, including prewritten computer software, which shall be taxed as sales of tangible personal property.

(B) As used in this section:

(i) “Computer” means an electronic device that accepts information in digital or similar form and manipulates it for a result based on a sequence of instructions;

(ii)(a) “Computer software” means a set of coded instructions designed to cause a computer or automatic data processing equipment to perform a task.

(b) “Computer software” does not include software that is delivered electronically or by load and leave;

(iii) “Computer software maintenance contract” means a contract that obligates a vendor of computer software to provide a customer with future updates or upgrades to computer software or support services with respect to computer software, or both;

(iv) “Delivered electronically” means delivered to the purchaser by means other than tangible storage media;

(v) “Electronic” means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities;

(vi) “Load and leave” means delivery to the purchaser by use of a tangible storage media in which the tangible storage media is not physically transferred to the purchaser; and

(vii) “Prewritten computer software” means computer software, including prewritten upgrades, that is not designed and developed by the author or other creator to the specifications of a specific purchaser; and

(2) Service of repairing or maintaining computer equipment or hardware in any form.

(b) The gross receipts or gross proceeds derived from the sale of a computer software maintenance contract are not taxable.

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Cite this article: FindLaw.com - Arkansas Code Title 26. Taxation § 26-52-304. Tax levied on sales of computer software and maintenance of computer hardware - last updated March 28, 2024 | https://codes.findlaw.com/ar/title-26-taxation/ar-code-sect-26-52-304/

Read this complete Arkansas Code Title 26. Taxation § 26-52-304. Tax levied on sales of computer software and maintenance of computer hardware on Westlaw

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