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The Colorado Department of Revenue recently issued GIL 26-004, concluding that digitally delivered photographs and stand-alone licenses to use those photographs are subject to state sales tax. In the Department’s view, both transactions involve taxable transfers of interests in tangible personal property (“TPP”). The GIL applies Colorado’s digital goods statute to treat electronically stored…

On July 3, 2025, the Colorado Court of Appeals held that sales of streaming video service subscriptions are subject to sales tax because they are sales of tangible personal property. Colorado imposes sales tax on retail sales and purchases of “tangible personal property,” which is defined as “corporeal personal property.” In 2021, the Department of…

The Colorado Department of Revenue issued a private letter ruling concluding that a taxpayer’s income arising from the sale of Colorado real property is apportionable income because the property was used in the taxpayer property rental business. However, the proceeds from such sales are not “receipts” and thus not included in its Colorado apportionment factor…

On July 1, 2022, a statewide 27 cent per sale delivery fee took effect in Colorado. The fee applies to retailers or marketplace facilitators that collect sales or use tax on the sale of tangible personal property that is sold and delivered (including delivery performed by a third party) to a purchaser in Colorado. The…

On April 4, 2022, the Colorado House of Representatives unanimously approved S.B. 32, a measure simplifying local sales and use tax reporting by prohibiting Colorado’s approximately 70 home-rule cities from requiring remote sellers to obtain local business licenses as long as the retailer has a state standard retail license. Beginning on July 1, 2022,…

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…

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…

On May 14, 2021, the House Finance Committee passed HB21-1311 and HB21-1312, but not without noteworthy amendments changing certain aspects of both bills.

HB21-1311, as introduced, would have repealed Colorado’s unique “3 of 6” test for determining C corporations that can be included in a combined report, and required “members of a unitary business” to…