GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

H	3 

HOUSE BILL 14
Corrected Copy 2/11/97
Committee Substitute Favorable 6/25/97

Short Title:  Update Custom Computer Software.	(Public)

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Sponsors:

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Referred to:  

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February 3, 1997

A BILL TO BE ENTITLED
AN ACT TO MODIFY THE SALES TAX DEFINITION OF CUSTOM COMPUTER SOFTWARE.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-164.3(20) reads as rewritten:
"(20)	Tangible personal property. –  Personal property that may be seen, weighed, measured, felt, or touched or is in any other manner perceptible to the senses. The term ”does not include stocks, bonds, notes, insurance, or other obligations or securities, nor does it include water delivered by or through main lines or pipes either for commercial or domestic use or consumption. The term includes ”
	 ””	 ”	 ”			 ”computer software delivered on a storage medium, such as a cd rom, a disk, or a tape."
Section 2.  G.S. 105-164.13 is amended by adding a new subdivision to read:
"(43)	Custom computer software. – ‘Custom computer software' is software written in accordance with the specifications of a specific customer.  The term includes a user manual or other documentation that accompanies the sale of the software.  The term does not include prewritten software that can be installed and executed with no changes to the software's source code other than changes made to configure hardware or software or to select personal preferences."
Section 3.  This act becomes effective October 1, 1997, and applies to sales made on or after that date.