Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
120.0000 AUTOMATIC DATA PROCESSING SERVICES AND EQUIPMENT—Regulation 1502
(a) IN GENERAL
120.0115.900 License for Copying Customized Basic Operating System Programs. The taxability of license fees and royalty payments for reproduction or copying customized basic operating system programs is set out in Regulation 1502(f)(1)(B). Tax does not apply to the license fees and royalty payments if the customers are not the end users of the operating system programs, but reproduce these programs for sale or license to their customers. If the customers were the end users, tax would apply to these charges for the use of the program. 1/14/88.