Opinion ID: 1778976
Heading Depth: 2
Heading Rank: 1

Heading: Tangibility and Tres.

Text: In Tres, the issue was not whether the software involved in the case was tangible or intangible. The parties stipulated that the software was intangible. The other issue examined by Tres was whether the manner by which the software was delivered to the customer changed it from intangible to tangible personal property. Judge Donnelly, writing for the majority, found that the software remained intangible and was not subject to the tax. The various possible forms for delivering the software, by tapes, by discs, by diskettes, or by telephone were all examined and the court concluded that the fact that the software could be delivered in many different ways did not effect the substantive nature of what was attempted to be taxed. [6] In addition to the fact that the software itself had been stipulated to be intangible personal property, the Tres court emphasized the evidence of customization of the software and the fact that the process of customizing bore more of the characteristics of a service transaction than a sale of property. [7]