Arkansas Code
Subchapter 1 - Arkansas Compensating Tax Act of 1949
§ 26-53-109. Tax on use, storage, or distribution of computer software — Definitions

The excise tax levied by this subchapter and by any act supplemental to this subchapter is levied on the privilege of storing, using, distributing, or consuming within this state any of the following:
(1)
(A) Computer software, including prewritten computer software, which shall be treated as a use, storage, distribution, or consumption of tangible personal property for purposes of tax.
(B) As used in this section:
(i) “Computer” means an electronic device that accepts information in digital or similar form and manipulates it for a result based on a sequence of instructions;
(ii)
(a) “Computer software” means a set of coded instructions designed to cause a computer or automatic data processing equipment to perform a task.
(b) “Computer software” does not include software that is delivered electronically or by load and leave;

(iii) “Delivered electronically” means delivered to the purchaser by means other than tangible storage media;
(iv) “Electronic” means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities;
(v) “Load and leave” means delivery to the purchaser by use of a tangible storage media in which the tangible storage media is not physically transferred to the purchaser; and
(vi) “Prewritten computer software” means computer software, including prewritten upgrades, that is not designed and developed by the author or other creator to the specifications of a specific purchaser; and

(2) Service of repairing or maintaining computer equipment or hardware in any form.