Highway Use Fee - Registration is now open for certain carriers to register for the new Connecticut Highway Use Fee - Click here for more information.

IMPORTANT INFORMATION - the following tax types are now available in myconneCT: Individual Income Tax, Attorney Occupational Tax, Unified Gift and Estate Tax, Controlling Interest Transfer Tax, and Alcoholic Beverage Tax. - Click here for the latest information.

This information is not current and is being provided for reference purposes only

Ruling 89-163


This Ruling has been obsoleted in part by AN 94(10)

You have inquired as to the sales and use tax consequences of the development of software to run equipment. X Company is an engineering and manufacturing company that contracts with independent engineering contractors to develop software to run its equipment. Software discs are the final product received from the engineer. The discs are resold as part of the equipment which cannot operate without them.

The sale of software discs is subject to the sales and use tax under the definition of "sale" and "selling" pursuant to Conn. Gen. Stat. §12-407(2)(c). X Company may purchase the software discs on a resale certificate as long as the following two conditions are met:

1. X Company sells the software discs without change or modification; and

2. X Company retains no proprietary right to the software discs.


October 27, 1989