https://apps.azleg.gov/BillStatus/BillOverview/31190
SB1279 is the result of negotiations between the Arizona Tax Research
Association (ATRA) and the Arizona Department of Revenue. Current law
does not specifically address the tax treatment of computer software.
This legislation defines “operating system software” and makes clear that the
software necessary to operate personal and general purpose computers and the
peripheral equipment is valued as part of the computer in which it is installed.
All other software, whether it is canned or customized for a specific application
by a computer, is not included when valuing personal property.