Effective May 30, 2006, the Colorado Department of Revenue adopted a new computer software regulation which provides that sales and use tax only applies to computer software purchases meeting the following conditions: prepackaged for repeated sale or license, governed by a tear-open nonnegotiable license agreement, and delivered in a tangible medium. In addition, the regulation stipulates that if a purchaser pays for taxable software with the intent to distribute any portion to locations outside of the state, Colorado tax is due only on the license fees associated with licenses used in Colorado. A written statement must be provided by the purchaser to the vendor confirming to the amount of the license fees for use in Colorado and must list the locations to be outside of Colorado. Once provided with the written statement, vendors are relived from any liability linked with the prorating. Additional rules and definitions are included within the regulation. (Special Regulation 7; 1 CCR 201-5)