Netflix Gets Colorado Justices’ Review of Sales Tax on Streaming

Netflix Inc. convinced the Colorado Supreme Court to review a ruling that video streaming is “corporeal” property subject to the state’s sales tax.

Colorado has defined “tangible personal property” subject to sales tax as “corporeal personal property” since 1935. Whether the tech giant’s streaming service is encompassed by those definitions will be the focus of the court’s review, the justices said in an order released Monday.

A ruling upholding the reasoning that led to a $8.5 million sales tax bill on Netflix for six months of 2021 could open the door to wider taxation of digital products and services.

A ...