The Fourth Appellate District reversed a judgment and remanded the action for further proceedings. The court held that application software “bundled” with leased or purchased computer hardware was not subject to property taxation.
Cardinal Health 301, Inc., manufactured a series of computerized stand-up medicine cabinets, each called “MedStation,” for use by hospitals. MedStations were equipped with built-in computers that were programmed to administer appropriate medications, at appropriate intervals, to hospital patients. Ninety percent of the value of each system consisted of proprietary computer software.
