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The use tax rate for taxable goods and services is 6%. However, the tax on computer and data processing services is 1%. Examples of taxable tangible personal property include equipment, machines, furniture, appliances, computers, computer software, office supplies, and books.
Maintenance of computer software is a computer and data processing service taxable at the 1% rate, whether the software is prewritten or custom.
California: SaaS is not a taxable service. However, software or information that is delivered electronically is exempt. The ability to access software from a remote network or location is exempt. Under California sales and use tax law, there must be a transfer of TPP, in order to have a taxable event.
Several exemptions are certain types of safety gear, some types of groceries, certain types of clothing, children's car seats, children's bicycle helmets, college textbooks, compact fluorescent light bulbs, most types of medical equipment, and certain motor vehicles.
Generally speaking, access to informational databases are non-taxable in most states either because they are not included in the definition of tangible personal property, or they are not specially identified as taxable services in presumably non-taxable service states, or in a few cases they are specially made exempt
Section 12-407(2)(i)(F) of the Connecticut General Statutes imposes the sales and use tax on "architectural, building engineering and design services" without regard to the type of building which is designed.
Are services subject to sales tax in Connecticut? "Goods" refers to the sale of tangible personal property, which are generally taxable. "Services" refers to the sale of labor or a non-tangible benefit. In Connecticut, specified services are taxable.
Business Use: Electronically accessed or transferred canned or prewritten software, and any additional content related to such software, that is sold to a business for use by the business remains taxable at the 1% rate as computer and data processing services.
The majority of states which have addressed the issue and have concluded that software (at least unbundled software) is not tangible personal property for ad valorem tax purposes and therefore is generally not taxable.
Unless contracts or other documents specifically state otherwise, digital goods will be presumed to be electronically delivered or transferred into Connecticut, and subject to Connecticut sales and use tax, if the billing address of the consumer or subscriber is in Connecticut.