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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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A


120.0000 Automatic Data Processing Services and Equipment—Regulation 1502

Annotation 120.0101

(a) In General

120.0101 Copyright Royalties. Tax does not apply to a transfer of a copyrighted program to a customer for the purpose of transferring the federal copyright interest, where the customer's payment of license fees or royalties is for the right to reproduce and distribute the program for a consideration to third parties. However, site license fees and other end user fees paid by the customer remain taxable. (Regulation 1502 (f)(1)(B).) 8/23/88.