On September 2, 2021, the Colorado Department of Revenue issued private letter ruling PLR 21-005 concluding that subscription fees for an online learning platform are subject to sales tax. The taxpayer operates an online learning platform offering on-demand digital courses comprised of streaming video lessons covering academic subjects and vocational license preparation courses. Each subscription also provides a written transcript of the classes the user registered and access to an automated online tutor. The taxpayer offers various subscription plans that provide transferrable college credit and additional tutor access. The Department concluded that while Colorado only taxes tangible personal property and enumerated services, and the service in question is not an enumerated service, under the true object of the transaction test each learning plan is a mixed transaction “more analogous” to tangible personal property. Thus, the subscription fees are treated as the taxable sale of tangible personal property. The Department also determined that the taxpayer’s provision of internet advertising services, which include creating web content for an advertising company on a “pay-per-click” model, are not taxable because advertising services are not taxable in Colorado.