Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2015
Sales and Use Tax Annotations
515.0000 SERVICE ENTERPRISES GENERALLY—Regulation 1501
(a) IN GENERAL—SERVICE DISTINGUISHED FROM SALE
515.0062.200 Web Site. A firm creates and maintains web sites for its client. The customer furnishes hardware and software for the design of an Internet web site. The software is modified by a third party to make designs compatible. Ultimately, the hardware and software are returned to the customer to host on its own equipment or another Internet service provider (ISP). Assuming that the customer is not provided any copies of the modified software (i.e., floppy disks, etc.,) or any other tangible personal property, such as program documentation or manuals, and all materials are returned to the customer, the firm is not making a taxable sale or fabricating property for a consumer. It is a reprogramming or reconditioning computer hardware provided to it by modifying the existing software in order to create a computer website. 10/10/96.