Colorado Repeals the Sales & Use Tax Exemption for Downloaded Software Effective January 1, 2027

Bradley Feimer

June 8, 2026

Colorado recently passed House Bill 1223, which eliminates the sales and use tax exemption for downloaded software. The legislation does, however, create a new exemption for downloaded software governed by a negotiable license or custom-built for a specific user. Both changes take effect January 1, 2027.

More information may be found here.

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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.

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