Colorado Gov. Jared Polis (D) signed legislation repealing a series of business tax exemptions to raise revenue for an expanded working families tax credit and balance out revenue gaps resulting from President Donald Trump’s 2025 tax law.
The measure (HB26-1223) Polis signed last week narrows a sales and use tax exemption available on downloadable software. The law specifies that only custom software developed for a particular user or governed by a negotiable license agreement is exempt from taxation, leaving all other forms subject to tax beginning in 2027. For many years, software was taxed differently depending on the location ...