Any business that purchases custom computer programming.

 

Any custom computer programming purchased by a business is exempt from sales tax. If a standard program is purchased, then customized, the cost of the standard program would be taxable and the customizing, if separately stated, would be nontaxable.

 

Purchase of Standard Computer Program

$60,000

Customization Expenses

$30,000

State Sales Tax Liability

$4,500

Custom Computer Programming Sales Tax Exemption

$1,500

State Sales Tax Liability after Exemption

$3,000

$1,500