The Colorado Department of Revenue determined that sales of digital images, whether delivered electronically or via tangible medium, are sales of tangible personal property for income tax apportionment purposes. The taxpayer was engaged in the business of providing digital images to commercial and government customers and provided such images electronically and via tangible medium depending on the preferences of the customer and other factors. The Department determined that sales of the images constituted sales of tangible personal property for income tax purposes regardless of the manner of delivery. The Department analogized the electronic transfers of the images to sales of digital goods, which the Department had previously determined to be sales of tangible personal property for sales tax purposes. Therefore, the Department determined that sales of images in this case were also sales of tangible personal property for income tax purposes regardless of the delivery method and should be sourced according to the Colorado rules relating to tangible personal property (i.e., sourced based on destination). Thus, according to the Department’s determination, such sales of images to Colorado customers or sales of images ultimately delivered to a recipient in Colorado must be sourced to Colorado for corporate income tax purposes. Co. Priv. Ltr. Rul. PLR-13-008 (Oct. 2, 2013).