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.