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2012/12/05 Council Agenda Packet
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2012/12/05 Council Agenda Packet
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Council Agenda Packet
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12/5/2012
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• <br /> J <br /> Persons engaged in the business of rendering services to others are taxable ruder the <br /> sales of retail services classification upon the gross income of such business under <br /> • <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 defmition 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 /> • <br /> Pagel3Vlf 56 <br />
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