Colorado · HB26-1223
Colorado SaaS tax and the negotiated license agreement exemption: dated facts
Last checked: Oct 30, 2026
What does the guidance say today?
As of October 30, 2026: Colorado's Department of Revenue guidance Sales & Use Tax Topics: Computer Software (revised October 2026) says software is taxable from January 1, 2027, and describes a negotiated license agreement as a written agreement, individually bargained, signed in writing by both parties before or at the time of access. Click-through or account-creation acceptance does not qualify.
Source: Sales & Use Tax Topics: Computer Software, rev. Oct 2026 (PDF)
Does a signed standard contract count?
The same guidance says a standard, form or boilerplate agreement offered on a nonnegotiable or substantially nonnegotiable basis to multiple licensees is not “individually bargained”, “even if the agreement bears a handwritten or electronic signature.”
Is the rule final?
The Department is still writing the final rule (House Bill 26-1223). Factors may change. We will update this page with the date of any change.
Source: Department of Revenue — Sales & Use Tax Topics: Computer Software
Does this apply in Denver, Boulder and other home-rule cities?
State guidance does not cover home-rule cities (e.g., Denver, Boulder), which administer their own sales tax.
Can I just mark negotiated customers exempt in my tax engine?
Marking a customer exempt in a tax engine may also remove local tax. Check local rules before you flag anyone.
Change log
- Oct 30, 2026 — page created from guidance revised October 2026.