Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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W

600.0000 WATERCRAFT—Regulation 1594

Annotation 600.0350

(e) COMPONENT PARTS OF WATERCRAFT

600.0350 Computer Software on Floppy Discs. Floppy discs, containing software necessary to drive computer hardware that is bolted to a vessel, qualify for the exemption provided by Regulation 1594 as a "component part" of a watercraft. To be considered a "component part" of a watercraft, the property must be an integral part of the watercraft, affixed or attached thereto in a substantial manner when in use. Floppy discs are placed into a computer disc drive for temporary use, then removed from the disc drive when they are no longer needed. Although the floppy discs are not permanently attached to the hardware, they are affixed to the hardware in a substantial manner when in use and, thus, are component parts of a watercraft. 7/10/96; 12/5/01. (Am. 2002–3).