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Colorado Legislature Kicks Off 2010 with an eTax

From Kelly William Cobb on Thursday, January 28, 2010 10:32 AM
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Originally posted at www.StopETaxes.com.

Here we go again!  Colorado has officially became the first state this year push a bill to collect taxes on all internet purchases.  Yesterday, the House Finance Committee considered "affiliate nexus tax" legislation in a hearing amongst a number of other tax proposals.  The measure would require out-of-state online retailers with no physical presence in the state to collect taxes on Colorado residents.

While the bill is a tax increase on consumers and a significant burden on online businesses (and interstate commerce), it also will likely fail to raise revenue.  Last year, when the bill passed in Rhode Island, the tax was estimated to raise no additional tax revenue and this has been confirmed by the Department of Revenue.  In fact, there was even a bill introduced in Rhode Island this year (House Bill 7071) that would repeal the tax.

Unlike other nexus tax bills, however, Colorado's House Bill 1193 goes one disturbing step further to allow the Department of Revenue to issue subpoenas to any out-of-state business that would require them to provide personal information about their Colorado customers.  Who doesn't love sharing their personal information including possibly credit card numbers and purchase details with the government?  Presumably, it would allow the state to come after residents to collect "use tax" on the products.  Even worse, if a business doesn't provide the information and chooses to protect the proprietary information of their customers, they can be held in contempt.  It also would apply regardless of the fact that the same internet tax bill is currently being challenged as unconstitutional in New York.

Similar bills have also been introduced in New Mexico, Virginia, and Mississippi this year.  No matter where you live, click here to write your state legislature now and oppose taxes on internet commerce.

Also, click here for a copy of ATR's letter to the Colorado House Finance Committee opposing the eTax.

For more information, visit www.StopETaxes.com or follow us on Twitter (@eTaxes) and Facebook.

Permalink | Email | Print | Tags: TAXES, TAKEACTION, eTaxes, Colorado

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Comments

Our local, state and federal governments are doing all they can to make it increasingly more difficult for small and medium sized businesses to grow and create new jobs. Well-intentioned? Yes! but evidences show they are horrible politicians who can't see beyond their noses or those of special interests and friends. Citizens, we need to return to the constitution and find men and women of integrity who speak the truth and follow through. Sure it's tough but they are out there. Reward them with bonuses or pay increases when they perform well and remove them from office when they don't. Colorado and all of America is worth saving. It's hard work but didn't our parents and grandparents do that for us? Let's do it now!
>> I W Pulley Saturday, February 20, 2010 1:40 PM

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