Starting January 1, 2027, Colorado will impose state-level sales tax on computer software, regardless of how it is delivered to the customer. HB26-1223, signed by Colorado Governor Jared Polis on June 4, 2026, repeals the existing software exception and adds "computer software" to the definition of tangible personal property. Under the new law, computer software, whether delivered by disc, download, or remote access over the internet, are taxable as tangible personal property. Mobile apps on phones and tablets are also included. Custom software, defined as software governed by a negotiable license agreement or developed for a specific user, is exempt under the new law. This change applies only at the state level; home-rule jurisdictions that already tax software at the local level are not affected.

The bottom line: If your business operates in Colorado and sells SaaS or any other software into the state, you will need to begin collecting state sales tax on those sales starting January 1, 2027. Review your contracts now to determine whether any of your offerings qualify for any exemptions. Businesses operating in Colorado's home-rule cities should confirm whether local rules already apply to their software sales.

Utah Governor Cox signed SB 162, which takes effect July 1, 2026. The bill confirms that digital audio-visual works, digital audio works, digital books, and gaming services are all subject to sales tax whether streamed or downloaded. This resolves a compliance gap created by older case law that treated streamed and downloaded products differently, a distinction the Utah State Tax Commission identified as causing inconsistent outcomes for businesses. 

The bottom line: The underlying taxability of digital products does not change under SB 162. The bill simply removes delivery method as a factor. If your business sells digital content or gaming services in Utah, your tax obligations are the same whether customers stream or download.

Maryland SB 644, effective January 1, 2027, establishes a formal process for buyers to claim a multiple points of use (MPU) exemption on digital products and taxable services used across multiple states. Buyers must register with the Comptroller and receive authorization before issuing MPU certificates to vendors. Once issued, certificates stay valid for future purchases from that vendor until rescinded or revoked. Vendors who receive a properly completed certificate are relieved of collection obligations, and have a 90-day window to obtain a certificate after a sale. The Comptroller must notify vendors directly if a buyer's authorization is revoked. 

The bottom line: If your business sells digital products or taxable services to Maryland buyers who use them across multiple states, SB 644 creates a clear, structured path to exempt those sales. Sellers and buyers should both confirm their registration and certificate processes are in place before the January 2027 effective date.

Washington's SB 6113, effective June 11, 2026, adds a new exclusion to the state's definition of taxable "digital automated services" (DAS). When a buyer accesses a DAS solely to communicate with their service provider, and no separate fee is charged for that access, the service no longer qualifies as a taxable DAS. This change directly affects platform portals and seller-facing dashboards. If a marketplace's seller tools are incidental to the underlying service relationship, they fall outside Business and Occupation (B&O) tax entirely. 

The bottom line: If your business operates a marketplace or platform with seller-facing portals or dashboards, review whether those tools meet the new exclusion criteria. The distinction turns on whether access is incidental to the service relationship and whether a separate fee is charged.

A Colorado Appeals Court has reversed a lower court ruling, finding that Netflix streaming subscriptions qualify as taxable "tangible personal property" under Colorado law. The court reasoned that the original 1935 statute's use of the word "corporeal"—drawing on a 1933 Black's Law Dictionary definition—encompasses anything perceivable by the senses, not just things that can be physically touched. Since Netflix isn't on Colorado's explicit list of sales tax exemptions, the court sided with the Department of Revenue.

‍What's next: The Colorado Supreme Court agreed on March 30, 2026 to take up the case and will decide whether Netflix streaming qualifies as TPP subject to state sales tax.

The bottom line: This case is a live example of states applying analog-era tax definitions to digital goods. The outcome could influence how streaming and other digital subscription services are treated across jurisdictions. Worth monitoring as the Supreme Court proceeds.

Washington Governor Bob Ferguson signed SB 6346 on March 30, 2026, repealing sales tax on several services that became taxable in October 2025, including custom software, IT consulting, data processing, security services, and temporary staffing. The bill also raises small business B&O tax credits and doubles the B&O filing threshold to $250,000. All relief provisions take effect January 1, 2029, pending validation of WA’s new income tax in WA courts.

Additional bills make near-term changes: the data center refurbishment sales tax exemption ends July 1, 2026 (SB 6231), the B&O insurance exemption narrows retroactively to October 2019 (HB 2487), and new penny-rounding rules for in-person cash transactions take effect June 11, 2026 (HB 2334).

The bottom line: Businesses operating in Washington should review each bill's effective date and confirm how the service tax repeals, exemption eliminations, and B&O changes affect their specific tax obligations.