How do the single article local sales tax limitation and the state single article sales tax apply to computer software, including remotely accessed software?

A single article is a separate independent unit or item of tangible personal property.  Single article taxation does not apply to custom software, which is subject to the full local and state sales tax rates. 

The single article sales tax laws do apply to prewritten computer software.  A separate prewritten computer software application or module that is sold by itself, without any other computer software application or module bundled with it, and sold for one price, will qualify as a single article of prewritten computer software.  This applies regardless of how the software is delivered, whether downloaded or remotely accessed.  

Therefore, only the first $1,600 of the sales price of prewritten computer software is subject to the applicable local sales tax.  An additional state single article tax at the rate of 2.75% is due on the amount of the sales price of prewritten computer software between $1,600.01 and $3,200. 

Beyond $3,200, no local tax or additional state single article tax is due on prewritten computer software.  If prewritten computer software is sold pursuant to a software service agreement that requires multiple payments during the agreement period, the single article treatment described above will apply to the total of the service agreement payments.

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