ARSD § 64:06:02:79 — Computer services -- Software -- Prewritten programs

64:06:02:79. Computer services -- Software -- Prewritten
programs. The sale of a prewritten computer program is the sale of tangible
personal property subject to sales tax. The term, prewritten computer software,
includes any prewritten upgrade, which is not designed and developed by the
author or other creator to the specifications of a specific purchaser. The
combining of two or more prewritten computer software programs or prewritten
portions thereof does not cause the combination to be other than prewritten
computer software. Prewritten computer software also includes software designed
and developed by the author or other creator to the specifications of a
specific purchaser when it is sold to another person. If a person modifies or
enhances prewritten computer software of which the person is not the author or
creator, the person is deemed to be the author or creator only of such person's
modifications or enhancements. Prewritten computer software or a prewritten
portion thereof that is modified or enhanced to any degree, when such
modification or enhancement is designed and developed to the specifications of
a specific purchaser, remains prewritten computer software; unless there is a
reasonable, separately stated charge or an invoice or other statement of the
price given to the purchaser for such modification or enhancement, then such
modification or enhancement does not constitute prewritten computer software.