Nev. Admin. Code § 372.880 — 372.880

NAC 372.880    Applicability of tax to prewritten computer software and computer
software maintenance contracts. ( NRS
360.090 , 360B.110 , 372.725 )
1.  Unless it is delivered electronically or
by load and leave, prewritten computer software is tangible personal property.
The tax applies to:
(a) The sale, lease, rental or licensing for use of
such prewritten computer software.
(b) A mandatory computer software maintenance
contract for such prewritten computer software.
(c) An optional computer software maintenance
contract for such prewritten computer software which obligates the vendor to
provide future updates or upgrades to the prewritten computer software. Except
as otherwise provided in subsection 2, the tax does not apply to an optional
computer software maintenance contract for such prewritten computer software
which only obligates the vendor to provide support services.
2.  If an optional computer software
maintenance contract is part of a bundled transaction which includes both
taxable and nontaxable or exempt products that are not separately itemized on
the invoice or similar billing document, the tax applies to the entire
transaction.
3.  For the purposes of this section:
(a) “Bundled transaction” has the meaning ascribed
to it in NAC 372.045 .
(b) “Computer software maintenance contract” means
a contract that obligates a vendor of prewritten computer software to provide a
customer with future updates or upgrades to prewritten computer software,
support services with respect to prewritten computer software, or both.
(c) “Mandatory computer software maintenance
contract” means a computer software maintenance contract that a customer is
obligated by contract to purchase as a condition to the retail sale of
prewritten computer software.
(d) “Optional computer software maintenance
contract” means a computer software maintenance contract that a customer is not
obligated to purchase as a condition to the retail sale of prewritten computer
software.
(Added to NAC by Tax Comm’n, eff. 9-30-88; A by R021-08,
4-17-2008; R104-09, 11-25-2009)