- Colorado enacted HB-26-1223 on June 4, 2026, expanding sales tax to more computer software, including many downloaded software purchases, SaaS subscriptions, and other remotely accessed software, effective January 1, 2027.
- The law broadens “tangible personal property” to include computer software delivered by any means, including download or remote access, and treats software available for repeat sale or license as taxable.
- Taxability will no longer depend on how software is accessed; many cloud-based and electronically delivered software arrangements that were previously treated as nontaxable services will now be subject to state sales and use tax.
- Existing exemptions remain for custom software and software sold under a qualifying negotiable license agreement.
- The change may also interact with existing Colorado home-rule city software taxes, creating additional complexity for providers and purchasers.
Source: eisneramper.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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