Is computer software taxable?

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Retail sales of canned software (pre-written software) which is intended for general or repeated use, regardless of the form in which it is transmitted, including electronic means (i.e., downloaded), is subject to tax. A license of computer software is not taxable if specific conditions are met. 86 Ill. Adm. Code 130.1935 (a)(1). Additionally, sales of custom computer software are not taxable provided certain criteria are met. 86 Ill. Adm. Code 130.1935 (c)(1).

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