Streaming ‘Netflix Tax’ in Colorado Raises Risk of Litigation

Critics warn they are ready to sue Colorado over its newly formalized stance that downloaded and streamed digital products are to be taxed as tangible personal property.

The state Department of Revenue’s Division of Taxation recently adopted amendments to its tangible personal property rule that will impose the state’s sales tax of 2.9% on streaming and downloaded digital goods. The Digital Goods Rule is set to take effect Jan. 30. The changes specifically include monthly subscription fees for streaming services of movies and television shows like those on Netflix, Hulu, Disney+, and Apple TV+. The method ...