N.J. Admin. Code § 18:24-25.5

Current through Register Vol. 56, No. 21, November 4, 2024

Section 18:24-25.5 - Retail sales of electronically delivered prewritten computer software; business-use exemption

(a) Retail sales of electronically delivered prewritten computer software are treated as retail sales of tangible personal property.

(b) Retail sales of electronically delivered prewritten computer software are taxable, except as provided in this subsection.

1. Sales of electronically delivered prewritten computer software are exempt from sales and use tax if the computer software is to be used directly and exclusively in the conduct of the purchaser's business, trade, or occupation.

2. In the following situations, computer software is not deemed to be delivered electronically, and the business-use exemption does not apply:

i. Computer software delivered by load-and-leave method; or

ii. Purchaser receives the computer software in some tangible storage medium in addition to receiving it by electronic delivery.

(c) The sale of music, ringtones, movies, books, and audio and video works delivered through electronic means is not deemed to be the sale of electronically delivered computer software.

N.J. Admin. Code § 18:24-25.5

Amended by R.2016 d.047, effective 5/16/2016.
See: 47 N.J.R. 2919(a), 48 N.J.R. 824(a).
Section was "Retail sales of electronically delivered prewritten software; business-use exemption". Inserted 'computer" throughout; in (a), substituted "Retail" for "Effective 10/1/2006, retail"; and in (b)2i, substituted "Computer software" for "Software", and deleted quote marks surrounding "load-and-leave".