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radio, refrigerator and machinery repairmen, laundry or dry cleaners.Also not included are certain <br /> personal and professional services specifically included within the definition of the term "sale at retail" <br /> in this section, such as amusement and recreation businesses of a participatory nature; abstract,title <br /> insurance and escrow businesses; credit bureau businesses and automobile parking and storage garage <br /> businesses. Not included are persons who render services to others in the capacity of employees as <br /> distinguished from independent contractors. <br /> Persons engaged in the business of rendering services to others are taxable under the sales of retail <br /> services classification upon the gross income of such business under Section 3.24.050(A)(6). <br /> There must be included within gross amounts reported for tax all fees for services rendered and all <br /> charges recovered for expenses incurred in connection therewith, such as transportation costs, hotel, <br /> restaurant, telephone, copy, printing, computer time and other expenses charged in providing the <br /> services. <br /> [Comment: RCW 35.102.120 requires that the model ordinance include this definition. However, no <br /> explicit definition will be included in the model ordinance until the RCW contains a definition of <br /> "service." In the absence of a definition of"service" in state law,the city will use the above definition <br /> and will tax it under sales of retail services under Section 3.24.050(A)(6).} <br /> Software, Prewritten Software, Custom Software, Customization of Canned Software, Master Copies, <br /> Retained Rights. <br /> 1. "Prewritten software"or"canned software" means computer software, including prewritten <br /> upgrades,that is not designed and developed by the author or other creator to the specifications of a <br /> specific purchaser.The combining of two or more prewritten computer software programs or <br /> prewritten portions thereof does not cause the combination to be other than prewritten computer <br /> software. Prewritten computer software includes software designed and developed by the author or <br /> other creator to the specifications of a specific purchaser when it is sold to a person other than such <br /> purchaser. Where a person modifies or enhances computer software of which such person is not the <br /> author or creator,the person shall be deemed to be the author or creator only of the person's <br /> modifications or enhancements. Prewritten computer software or a prewritten portion thereof that is <br /> modified or enhanced to any degree, where such modification or enhancement is designed and <br /> developed to the specifications of a specific purchaser, remains prewritten computer software; <br /> however, where there is a reasonable, separately stated charge or an invoice or other statement of the <br /> price given to the purchaser for the modification or enhancement,the modification or enhancement <br /> shall not constitute prewritten computer software. <br /> 2. "Custom software" means software created for a single person. <br /> 3. "Customization of canned software" means any alteration, modification, or development of <br /> applications using or incorporating canned software to specific individualized requirements of a single <br /> person. Customization of canned software includes individualized configuration of software to work <br /> with other software and computer hardware but does not include routine installation. Customization of <br /> canned software does not change the underlying character or taxability of the original canned software. <br /> 2.1 <br /> az 2019 ORDINANCE: Business and Occupation Tax Page 16 of 40 <br />