California Software Maintenance Agreement - Alternate

State:
Multi-State
Control #:
US-CP0909-AM
Format:
Word; 
Rich Text
Instant download

Description

This sample form, a detailed Software Maintenance Agreement (Alternate) document, is for use in the computer, internet and/or software industries. Adapt to fit your circumstances. Available in Word format.
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FAQ

A maintenance agreement (contract), sometimes called a service agreement (contract), is an agreement which requires specific performance of repairing, cleaning, altering, or improving tangible personal property on a regular or irregular basis to ensure the product's continued satisfactory operation.

The contract for providing updates and future releases is a contract for the sale of tangible personal property. The charges for such a software maintenance contract are subject to sales tax regardless that the maintenance contract may be optional with the purchaser.

A software maintenance agreement, or SMA, is a legal contract that obligates the software vendor to provide technical support and updates for an existing software product for their customers. It may also extend the expiration date of certain features, such as new releases or upgrades.

Professional services are not subject to sales tax in the state of California.

(a) In General The contract for providing updates and future releases is a contract for the sale of tangible personal property. The charges for such a software maintenance contract are subject to sales tax regardless that the maintenance contract may be optional with the purchaser.

If you repair and return the customer's original part, tax generally applies only to the charge for parts and materials furnished in reconditioning or repairing the part. Repair labor is not taxable. For example, you charge $2,800 to rebuild a transmission: $2,000 for parts and $800 for the repair labor.

California is one of the few states to tax only physical goods. This means that digital goods and services, including SaaS, are generally not taxable in the state, unless the service includes creating a physical item. The way digital products are categorized can change from state to state and city to city.

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California Software Maintenance Agreement - Alternate