Computer software is a general term used to describe a collection of computer programs, procedures and documentation that perform some tasks on a computer system. Software is considered personal property and may be assigned.
Mississippi Assignment of Software
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Sales of property, labor or services sold to, billed directly to, and payment is made directly by the United States Government, the state of Mississippi and its departments, institutions, counties and municipalities or departments or school districts of its counties and municipalities are exempt from sales tax.
Computer software is tangible personal property and is taxable if it is ?physically or electronically delivered or located within this state.? Computer software maintained on a server located outside the state and accessible for use only via the internet is not a taxable retail sale.
All sales of tangible personal property in the State of Mississippi are subject to the regular retail rate of sales tax (7%) unless the law exempts the item or provides a reduced rate of tax for an item. The tax is based on gross proceeds of sales or gross income, depending on the type of business.
Computer software is tangible personal property and is taxable if it is ?physically or electronically delivered or located within this state.? Computer software maintained on a server located outside the state and accessible for use only via the internet is not a taxable retail sale.
Prewritten computer software delivered on storage media such as a diskette is generally subject to states' sales taxes. However, some states do not impose sales tax on prewritten computer software if it is downloaded electronically.
