In a recent private letter ruling, the Colorado Department of Revenue concluded that subscription fees for online learning platforms are subject to the state’s sales tax and state-administered local sales tax. The subscription fees are treated like the sale of taxable tangible personal property because according to the true object of the transaction test, each learning plan is a mixed transaction “more analogous” to tangible personal property. The learning plans included access to study modules as finished products, streaming video lessons, and written transcripts of each lesson. The Colorado DOR also determined that the taxpayer’s provisions of internet advertising services, using a “pay per click” model, are not taxable. Advertising services are not taxable in Colorado. (PLR 21-005, Colorado Department of Revenue, September 2, 2021)