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otr

Office of Tax and Revenue

OTR will host its annual Tax Practitioner’s Institute on Tuesday, January 13, 2026, beginning at 9 am. The workshop will be offered in a hybrid format, with an in-person session and a virtual option via Microsoft Teams. The seminar is free, but registration is required. Register here.

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Sales Tax on Data Processing Services

Examples

Taxable Services
  • Computerized Business Accounting
  • Payroll Services
  • Word Processing Services
  • Computerized Data Information
  • Storage and Manipulation
  • Inventory Control Data
  • Systems Analysis and Programming Services
  • Computer Time Sharing
  • Laser and Optical Scanning
  • Billing Services
Data Conversion Services
  • Converting Raw Data to Microfiche, etc.
  • Statistical Analysis Services
  • List Maintenance
  • Data Base management
  • Library Management
  • Desk Top Publishing
  • Software Development and Sales
  • System Software
  • Application Software
  • Data Entry Services
  • Keypunch
  • Key to Tape
  • Key to Diskette
  • Programming
  • Key Verification
  • Data Communication

Data Processing Consulting Services
  • Specifying Computer Hardware Configurations
  • Evaluating Technical Processing Characteristics
  • Computer Programming or Software Development
Non-Taxable Services
  • Performing accounting, legal and insurance services in which data processing services are incidental.
  • Consultant hired by the company to do a study on management information needs; the consultant mentioned in his report that the computer system needed to be upgraded.
  • Telecommunication Line Charges
  • Computer Training Courses (not in conjunction with the sale of software)