This blog addresses which states require sales tax on downloadable custom software. Custom computer software is typically developed specifically for one user and prepared to the special order of that user.
Many states do not require sales tax on custom software either because it is delivered electronically or is considered a nontaxable service. Some states treat custom software as a taxable service, or require sales tax on all computer software, regardless of whether it is custom, prewritten, downloaded or delivered through tangible media.
Source: thetaxvalet.com
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