Wisconsin Administrative Code › Department of Revenue › Chapter Tax 11 - Sales And Use Tax › Subchapter VIII - Service Enterprises › Section Tax 11.71 - Computer industry

Current through June 24, 2024
(1) DEFINITION OF TERMS. In this section:
(a) "Application" means the specific job
				performance by an automatic data processing installation.
(b) "Automatic data processing equipment"
				includes computers used for data processing purposes and their peripheral
				equipment as well as punched card tabulating machines. It does not include
				tape-controlled automatic drilling, milling, or other manufacturing machinery
				or equipment.
(c) "Coding" means
				the list, in computer code, of the successive computer instructions for
				successive computer operations for solving a specific problem.
(d) "Computer" means an electronic device
				that accepts information in digital or similar form and that manipulates such
				information to achieve a result based on a sequence of instructions.
(e) "Computer software" means a set of coded
				instructions designed to cause a computer or automatic data processing
				equipment to perform a task.
(em)
				"Computer software maintenance contract" means a contract that obligates a
				vendor of computer software to provide a customer with future updates or
				upgrades to computer software, computer software support services, or
				both.
(f) "Data processing" means
				the recording and handling of information by means of mechanical or electronic
				equipment, commonly referred to as automatic data processing.
(g) "Input" means the information or data
				transferred, or to be transferred, from external storage media including
				punched cards, punched paper tape, and magnetic media into the internal storage
				of the computer.
(h) "Keypunching"
				means recording information in cards, paper tapes, or magnetic tapes, disc, or
				drum by punching holes or otherwise entering information in the cards, tapes,
				discs, or drums, or recording data on any media to represent letters, digits,
				and special characters. Keypunching includes the necessary preliminary encoding
				or marking of the source documents.
(i) "Keystroke verifying" means the use of a
				machine known as a punched card verifier or tape transcriber, which has a
				keyboard, to ensure that information punched in a punch card or transcribed on
				a tape during the keypunching operation has been punched properly.
(j) "Load-and-leave" means delivery to a
				purchaser by using a tangible storage media that is not physically transferred
				to the purchaser.
(k) "Prewritten
				computer software" is defined in s.
				77.51(10r),
				Stats., to mean computer software, including prewritten upgrades, that is not
				designed and developed by the author or other creator to the specifications of
				a specific purchaser. The combining of 2 or more "prewritten computer software"
				programs or prewritten portions of computer software does not cause the
				combination to be other than "prewritten computer software." "Prewritten
				computer software" includes software designed and developed by the author or
				other creator to the specifications of a specific purchaser if it is sold to a
				person other than the specific purchaser. If a person modifies or enhances
				computer software of which the person is not the author or creator, the person
				is the author or creator only of the person's modifications or enhancements.
				"Prewritten computer software" or a prewritten portion of computer software
				that is modified or enhanced to any degree, with regard to a modification or
				enhancement that is designed and developed to the specifications of a specific
				purchaser, remains "prewritten computer software," except that if there is a
				reasonable, separately stated charge or an invoice or other statement of the
				price given to the purchaser for the modification or enhancement, the
				modification or enhancement is not "prewritten computer software."
(L) "Processing a client's data" means the
				developing of original information from raw data furnished by a client.
				Automatic data processing operations which develop original information include
				summarizing, computing, extracting, sorting, sequencing, or the updating of a
				continuous file of information maintained for a client by a service
				bureau.
(m) "Program" means the
				complete plan for the solution of a problem, i.e., the complete sequence of
				automatic data processing equipment instructions necessary to solve a specific
				problem. It includes both systems and application programs and subdivisions,
				such as assemblers, compilers, routines, generators, and utility programs. For
				purposes of this section a program is either a prewritten or custom
				program.
(n) "Reformatting of data"
				means the rearranging of data by mechanical or electronic equipment.
(o) "Service bureau" means a business
				rendering automatic data processing services.
(p) "Source document" means a document from
				which basic data are extracted, such as a sales invoice.