Colorado court upholds local use tax on downloaded software and online data services

September 2012


A Colorado Court of Appeals upheld the imposition of the City of Boulder's use tax on a company's use of downloaded computer software and access to online data services. As a result of this decision, taxpayers unfamiliar with Colorado's home rule law who expect local jurisdictions to follow the state's position on software and online data services need to re-evaluate their tax positions at the local level on the purchase or sale of such items. [Ball Aerospace & Technologies Corporation v City of Boulder, Colorado, Colo. Ct. of App., No. 11CA2129, 9/13/12]

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