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The charge for a software maintenance contract, which provides updates and future releases, is a contract for the sale of tangible personal property and is taxable.
If the tangible personal property is sent out of Florida to be repaired and then returned to Florida, the transaction is taxable. Maintenance or service warranty contracts covering taxable, tangible personal property are taxable.
Software" is defined as "personal property," but not as either tangible or in- tangible personal property. 46 In the same statutory section, the Florida Sta- tutes define tangible and intangible personal property, whose definitions fail to include "computer software.
Sales of custom software - downloaded are exempt from the sales tax in Florida. Sales of customization of canned software are exempt from the sales tax in Florida. Sales of digital products are exempt from the sales tax in Florida.
When you sell a service agreement the amount of sales tax you must collect is as follows: When selling a service agreement to a customer who resides in Florida, you must collect 6% state sales tax plus the local discretionary sales surtax for the county in which the RV will be titled and registered.
However, electronically accessed software and customized software is subject to Florida sales tax when sold as part of the sale of tangible personal property. Such software is considered to be services that are included in the sales price of the computer hardware.
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.
Sales of parts purchased for use in performing service under optional maintenance contracts are exempt from the sales tax in Florida.
Florida uniquely and broadly imposes sales tax on service warranties. So while the software and other new technologies and services may be exempt, the maintenance of them, regardless of whether such contracts include parts, is taxable in the state of Florida.