The gross receipts from the sale of computer software, technical services and attendant appliances, equipment, and facilities are subject to the retail occupational sales tax.

1. (1) Tangible personal property or any product transferred electronically such as instructions, directions, models, and layout sheets which are elements of technical service transactions;
2. (2) Designing and implementing of computer systems;
3. (3) Designing of storage and data retrieval systems;
4. (4) Consulting services;
5. (5) Feasibility studies;
6. (6) Evaluation of bids;
7. (7) Providing of technical assistance;
8. (8) Fees or access charges for access to data bases or networks; and
9. (9) Fees or access charges for access to software, programs, or computer systems.

A computer is an electronic device that accepts information in digital or similar form and manipulates the information for a result based on a sequence of instructions. Computer software is a set of coded instructions designed to cause a computer or automatic data processing equipment to perform a task.

The following are examples of the services, appliances, equipment, and facilities which are taxable:

Source: 2 SDR 40, effective December 8, 1975; 7 SDR 80, effective February 22, 1981; 12 SDR 111, effective January 12, 1986; 13 SDR 129, 13 SDR 134, effective July 1, 1987; 21 SDR 219, effective July 1, 1995; 31 SDR 214, effective July 6, 2005; 35 SDR 48, effective September 8, 2008.

General Authority: SDCL 10-45-47.1(3).

Law Implemented: SDCL 10-45-2 , 10-45-2.4 , 10-45-4 , 10-45-5.2.