New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 24 - SALES AND USE TAX ACT › Subchapter 25 - SALES OF COMPUTER SOFTWARE AND RELATED SERVICES › Section 18:24-25.1A - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, as used in this subchapter, shall
				  have the following meanings, unless the context clearly indicates otherwise:
"Computer software" means a set of coded instructions designed to
				  cause a computer or automatic data processing equipment to perform a task.
"Custom software" means computer software created, written, and
				  designed for the exclusive use of a specific purchaser and sold to the purchaser for
				  whom it was designed. The use of development languages or prewritten functions or
				  routines does not necessarily cause computer software, designed for a specific
				  purchaser, to become taxable prewritten computer software.
"Customer support services" means verbal and written computer
				  software advice or guidance (for example, provided via the Internet or
				  telephone).
"Delivered electronically" means delivered from the seller to the
				  purchaser by means other than tangible storage media.
"First available for transmission" means the location from which
				  the computer software originated.
"Installing" computer software means the act of loading an
				  executable file, whether tangible or electronic, containing a prewritten computer
				  software application or program onto a device or equipment. The mere act of
				  electronic delivery does not constitute installation.
"Load-and-leave" is a method of computer software delivery
				  whereby a seller or its representative installs computer software on a purchaser's
				  computer by using a tangible storage medium, which is then removed and not left in
				  the purchaser's possession.
"Modifying" computer software means any action, other than
				  installing or servicing computer software, performed to enhance, improve, or
				  customize computer software, regardless of whether the computer code is
				  changed.
"Prewritten computer software" means any computer software,
				  including prewritten upgrades and updates and combinations of two or more prewritten
				  computer software programs, or prewritten portions thereof, that is not designed and
				  developed to meet the unique requirements of a specific purchaser, and sold to that
				  specific purchaser for the purchaser's exclusive use.
"Servicing" computer software means any action to maintain the
				  compatibility of computer software with other computer hardware and computer
				  software products and performing other corrective services that do not involve
				  changing computer code.
"Software term license" means a transaction in which the
				  purchaser's right to continue to use prewritten computer software is dependent on
				  periodic payments.
"Tangible personal property" means personal property that can be
				  seen, weighed, measured, felt, touched, or in any other way perceived by human
				  senses. It includes prewritten computer software, regardless of whether it is
				  delivered electronically or through tangible storage media.