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Persons engaged in the business of rendering services to others are taxable under the <br /> sales of retail services classification upon the gross income of such business under <br /> Section 3.24.050(A)(6). <br /> There must be included within gross amounts reported for tax all fees for services <br /> rendered and all charges recovered for expenses incurred in connection therewith, such as <br /> transportation costs, hotel, restaurant, telephone, copy, printing, computer time and other <br /> expenses charged in providing the services. <br /> [Comment: RCW 35.102.120 requires that the model ordinance include this definition. <br /> However, no explicit definition will be included in the model ordinance until the RCW <br /> contains a definition of"service." In the absence of a definition of"service" in state law, <br /> the city will use the above definition and will tax it under sales of retail services under <br /> Section 3.24.050(A)(6).] <br /> Software, Prewritten Software, Custom Software, Customization of Canned Software, <br /> Master Copies, Retained Rights. <br /> 1. "Prewritten software" or"canned software" means computer software, including <br /> prewritten upgrades, that is not designed and developed by the author or other creator to <br /> the specifications of a specific purchaser. The combining of two or more prewritten <br /> computer software programs or prewritten portions thereof does not cause the <br /> combination to be other than prewritten computer software. Prewritten computer software <br /> includes software designed and developed by the author or other creator to the <br /> 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 <br /> is not the author or creator, the person shall be deemed to be the author or creator only of <br /> the person's modifications or enhancements. Prewritten computer software or a <br /> prewritten portion thereof that is modified or enhanced to any degree, where such <br /> modification or enhancement is designed and developed to the specifications of a specific <br /> purchaser, remains prewritten computer software; however, where there is a reasonable, <br /> separately stated charge or an invoice or other statement of the price given to the <br /> purchaser for the modification or enhancement, the modification or enhancement shall <br /> 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 <br /> development of applications using or incorporating canned software to specific <br /> individualized requirements of a single person. Customization of canned software <br /> includes individualized configuration of software to work with other software and <br /> computer hardware but does not include routine installation. Customization of canned <br /> software does not change the underlying character or taxability of the original canned <br /> software. <br /> 4. "Master copies" of software means copies of software from which a software <br /> developer, author, inventor, publisher, licensor, sublicensor, or distributor makes copies <br /> Page 32 of 56 <br />