On June 23, 2021, Colorado’s Governor signed legislation adding “digital goods” to the statutory definition of “tangible personal property” subject to sales and use tax. HB 21-1312 (Effective July 1, 2021). The bill states that it interprets the definition of “digital goods” consistent with “the department of revenue’s long-standing treatment of digital goods, as reflected in its rule.” Colorado’s Rule 39-26-102(15) was amended effective January 30, 2021 to “clarify” that sales tax would apply to the streaming of digital goods. See more about the rule’s adoption here. Under the new law, the definition of “tangible personal property” will include digital goods, regardless of the method of delivery. C.R.S. § 39-26-102(15)(b.5) as amended by HB 1312. The new definition specifies that “digital goods” includes, but is not limited to, electronic download and internet streaming of video, music, or electronic books.