Colorado and Washington Expand Sales Tax to Digital Goods and Services, Impacting Multistate Compliance

• Colorado and Washington made major changes to sales and use tax laws, especially affecting digital goods and services.
• Colorado courts ruled that digital streaming subscriptions (e.g., Netflix) are taxable tangible personal property.
• The Colorado Supreme Court limited local governments’ ability to expand the tax base without voter approval under TABOR.
• Colorado eliminated the sales tax vendor fee and continued modernizing its tax administration system.
• Washington enacted a broad expansion of services subject to sales tax, significantly impacting compliance for businesses.

Source: weaver.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.

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