- Colorado Court of Appeals ruled Netflix subscriptions are subject to sales tax.
- The decision reversed a previous district court ruling that favored Netflix.
- Colorado law taxes tangible personal property, including digital goods.
- A 2021 regulation specified digital video subscriptions are taxable.
- Netflix argued the tax rule conflicted with previous statutes and violated taxpayer rights.
- The district court initially agreed with Netflix, stating streaming services are not tangible.
- The Court of Appeals disagreed, stating tangible property includes items perceived by senses.
- The court referenced a 1943 Arizona case supporting this interpretation.
- The court emphasized the legislative intent to tax digital media despite delivery method changes.
Source: ryan.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
