On September 28, 2018, the City of Aurora received a favorable district court ruling regarding the applicability of its sales and use tax provisions to digital motion picture products. Two AMC theatres in Aurora had sought a tax refund for use taxes paid on digital motion pictures leased from motion picture studios for display in the theatres. AMC argued that the nanoscale magnetic fields on hard disk drives containing the digital motion pictures remained “intangible” because those magnetic fields remained imperceptible by human senses. AMC argued that the Aurora tax code only permitted taxation on “tangible” personal property, and that Aurora had to refund use taxes on the “intangible” nanoscale magnetic fields. Following a trial in June 2016, the district court ruled that digital motion picture products involved “tangible” personal property for several reasons under controlling legal principles. Specifically, digital motion pictures (1) become perceptible to the senses when displayed; (2) occupy physical space on hard disk drives, computer servers, and digital projectors; (3) become susceptible to physical and electronic security measures; and (4) enjoy legal protections under principles such as copyright, conversion, theft, et cetera. The district court denied AMC’s request for use tax refunds and affirmed Aurora’s ability to apply its tax code to digital motion picture products. Motion picture theatres have sought tax refunds in at least three other Colorado jurisdictions, and this ruling may significantly impact stayed proceedings in those jurisdictions. The district court’s ruling has potentially far-reaching implications for the application of municipal tax codes to a wide variety of digital products in the digital age. Paul D. Godec and Jordan Lubeck at Kissinger & Fellman, P.C., served as trial counsel to obtain this potentially precedent-setting result.