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1/27/92. 120.0060 Computer Work. If the product of a computer operation consists simply of punchcards or other tangible property prepared from data supplied by the customer, the operation constitutes a processing of personal property and is taxable as a sale under section 6006(b).
Sales of are subject to sales tax in Louisiana. Sales of parts purchased for use in performing service under optional maintenance contracts are exempt from the sales tax in Louisiana.
All sales, use, consumption, distribution, storage for use or consumption, leases, and rentals of tangible personal property are taxable, unless an exemption or exclusion is provided by law for a particular transaction.
Service fees for the installation of software are subject to sales tax. Moreover, charges for software maintenance services including delivery of updates for prewritten software are generally taxable. However, maintenance contracts that only provide support services for canned software are not taxable.
Tax must be collected on any computer software. Both the repair and routine servicing of all kinds of Tangible Personal Property are considered taxable repair services.
Louisiana imposes sales and use tax on retail sales of tangible personal property in Louisiana or on the use of tangible personal property in Louisiana. Software located on a server, instate or out-of-state, and made available to users (as discussed above) is taxable by this State.
Sales of canned software - downloaded are subject to sales tax in Louisiana. Sales of custom software - delivered on tangible media are exempt from the sales tax in Louisiana. Sales of custom software - downloaded are exempt from the sales tax in Louisiana.
The Ruling concludes that the exclusion was not applicable, and repair parts or materials are subject to the Louisiana Sales Tax. Louisiana statutory law provides an exclusion from sales tax for items of tangible personal property which are sold for the purpose of lease or rental.
Professional services are generally exempt from sales tax in Louisiana. However, businesses that specialize in the furnishing of repairs to tangible personal property; and the furnishing of telecommunications services are not exempt.
Just as it varies by country, the definition and taxability of digital services in the United States varies by state. And as in other countries, U.S. sales tax laws are subject to change. Approximately 30 states levy their sales taxes on digital, or electronic services.