CO Repeals Downloaded Software Sales and Use Tax Exemption Effective January 1, 2027

Bradley Feimer

July 6, 2026

Colorado House Bill 1223, signed in to law on June 2, 2026, repeals the sales and use tax exemption for downloaded software beginning January 1, 2027. The legislation, however, provides a narrow exemption for downloaded software governed by a negotiable license agreement or developed for an individual user.

More information may be found here.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Author

Bradley Feimer

Bradley Feimer is a Senior Regulatory Counsel at Sovos. Brad focuses on domestic sales tax, fees, and Colorado local taxation. Brad is a member of the Massachusetts Bar and the Institute for Professionals in Taxation (IPT). He has a B.A. in English from The Ohio State University and a J.D. from Suffolk University Law School.

Share This Post