Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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432.0000 PRINTED SALES MESSAGES—Regulation 1541.5

Annotation 432.0028

432.0028 Developmental Software as "Printed Sales Message." A software company is in the business of selling software programs for resale. Before the company actually mass produces a software program, extensive product development is performed by sending early versions of the software to approximately 2,000 persons at no charge to the recipient. The recipients use the free software and notify the software company of any "bugs" found in the program.

The exemption for "printed sales messages" does not apply to the sale of the computer software. Tax applies to the sale to the software company of the disks, the disk duplicating services and the supporting manuals. 5/3/93. (Am. 2008–1).