Colorado Appeals Court: Netflix Streaming Subscriptions Are Taxable as Tangible Personal Property

• The Colorado Appeals Court ruled that Netflix streaming subscriptions are subject to sales tax and are considered tangible personal property.
• This decision reverses a previous District Court ruling that found Netflix subscriptions were not tangible personal property and thus not taxable.
• The case began in 2013 and involved disputes over whether digital streaming services fit the definition of taxable goods under Colorado law.
• In 2021, Colorado amended its sales tax law to explicitly include digital goods and clarify that delivery method does not affect taxability.
• The Appeals Court considered the legislative history and intent, ultimately siding with the Department of Revenue and upholding the tax on Netflix subscriptions.

Source: salestaxinstitute.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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