By Jessica Eisenmenger and Amy Nogid

The Florida Department of Revenue determined that software upgrades that are delivered electronically are not subject to sales tax because the upgrade was a stand-alone version of the software and did not rely on the earlier, physically-delivered software to operate. The Department also determined that sales tax does not apply to the maintenance and support services related to the electronically-delivered software upgrade because the services are not taxable on their own and are not bundled with the sale of tangible personal property. Finally, the Department advised the taxpayer that it must secure refunds from the vendor and not the Department. If the vendor refused to refund the tax, it could receive a refund from the Department if it provided an Assignment of Rights from the vendor. Fla. Dep’t of Revenue, Tech. Assist. Adv. No. 15A-015 (Oct. 26, 2015).