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Ohio Admin. Code § 5703-9-59

Sales and use tax, transactions involving optional computer software maintenance contracts

Official textcodes.ohio.govlast amended

# (A)

As used in this rule:

# (1)

"Computer software maintenance contract" means a contract that obligates a vendor or seller of computer software to provide a customer with future updates or upgrades to computer software, support services with respect to computer software or both.

# (2)

"Mandatory computer software maintenance contract" means a computer software maintenance contract that the customer is obligated by contract to purchase as a condition to the retail sale of computer software.

# (3)

"Optional computer software maintenance contract" is a computer software maintenance contract that a customer is not obligated to purchase as a condition to the retail sale of computer software.

# (B)

A charge for a mandatory computer software maintenance contract is considered to be part of the sales price of the computer software to which it relates.

# (C)

In any case where an optional computer software maintenance contract for prewritten computer software is sold to an Ohio consumer by a vendor or seller, the following treatment shall apply.

# (1)

If the optional computer software maintenance contract only obligates the vendor or seller to provide upgrades and updates, the contract will be deemed to be a sale of prewritten computer software, which is defined to be tangible personal property by division (YY) of section 5739.01 of the Revised Code. Such a sale will be considered taxable unless the consumer has a claim of exemption.

# (2)

If the optional computer software maintenance contract only obligates the vendor or seller to provide support services, and no upgrades or updates, the transaction will be considered to be the sale of a non-taxable personal or professional service.

# (3)

If the optional computer software maintenance contract includes both upgrades or updates and support services that are not itemized separately on the invoice or similar billing document, the contract shall be characterized as a sale of prewritten computer software, which is defined to be tangible personal property by division (YY) of section 5739.01 of the Revised Code. Such a sale will be considered taxable unless the consumer has a claim of exemption.

Last updated October 7, 2024 at 1:29 PM

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In this chapter (40 sections)
  1. 5703-9-23 · Exemption for tangible personal property used or consumed…
  2. 5703-9-24 · Household good movers engaged in highway transportation for…
  3. 5703-9-25 · Watercraft, outboard motors, and personal watercraft; tax…
  4. 5703-9-26 · Sourcing ancillary services and internet access
  5. 5703-9-27 · Sale of food to students by public, private and parochial…
  6. 5703-9-28 · Sales and use tax: newspapers and magazines
  7. 5703-9-29 · Outdoor advertising concerns
  8. 5703-9-30 · Auctions and auctioneers
  9. 5703-9-31 · Florists
  10. 5703-9-32 · Sales and use tax: funeral transactions
  11. 5703-9-33 · Photographers
  12. 5703-9-34 · Sign manufacturers, sign painters and sales agents
  13. 5703-9-35 · Purchases, as a liquidator of closed institutions, by…
  14. 5703-9-36 · Sales and use tax, negative equity in motor vehicle sales…
  15. 5703-9-37 · Sales and use tax: tire retreading and repairs
  16. 5703-9-38 · Photocopying and blue prints
  17. 5703-9-39 · Interstate commerce
  18. 5703-9-40 · Sales of personalty belonging to another
  19. 5703-9-41 · Person engaged in advertising field
  20. 5703-9-42 · Installation or sale of septic tanks
  21. 5703-9-43 · Books, manuals, bulletins, lists or similar materials
  22. 5703-9-44 · Bad debts
  23. 5703-9-45 · Sales; alleged exempt sales; submission of additional…
  24. 5703-9-46 · Sales and use taxes: automatic data processing, computer…
  25. 5703-9-48 · Sales tax; purchases made with food stamp coupons
  26. 5703-9-49 · Corporate officer liability
  27. 5703-9-50 · Registration using central registration system
  28. 5703-9-51 · County and transit authority rates and boundary database
  29. 5703-9-52 · Delivery charges
  30. 5703-9-53 · Rate changes; application of effective date to services
  31. 5703-9-54 · Taxability matrix
  32. 5703-9-55 · Sales and use tax, change in state tax rate
  33. 5703-9-56 · Streamlined sales and use tax - review and approval of…
  34. 5703-9-57 · Relief from liability for certified service providers where…
  35. 5703-9-58 · Sales and use tax, relief of liability for purchasers
  36. 5703-9-59 · Sales and use tax, transactions involving optional computer…
  37. 5703-9-61 · Electronic filing and payment of "Consumer's Use Tax"
  38. 5703-9-62 · Physical Fitness Facilities
  39. 5703-9-63 · Crude oil and natural gas production
  40. 5703-9-64 · Sleeping Accommodations and Transient Guests
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