From my previous post, it looks like things are A-OK and that the affiliate language has been removed from HB-1193. However, I’m not sure the word has gotten out yet.
Yesterday the Denver Post ran Bill spotlights obscure tax: Out-of-state firms may have to tell Coloradans who buy on the Web that they owe sales tax, which didn’t tell readers about the changes. Well, the article didn’t until you read the tacked on note at the bottom:
Bill changed significantly
An online-sales-tax bill heading for a vote today in the state Senate was changed significantly from an earlier version. The initial bill would have taxed purchases made by Colorado consumers through affiliate marketers, whose websites direct people to retail websites. That provision encountered strong opposition from affiliate marketers and was dropped. Online retailers have severed ties with affiliate marketers in the three states that have passed similar online- sales-tax legislation, said Rebecca Madigan, executive director of the Camarillo, Calif.-based Performance Marketing Association. The earlier version of the bill would have generated an estimated $4.7 million in tax revenue. It's unclear how much the new one could generate.
I’m sure this was added instead of rewriting the whole article, probably due to a tight deadline.
On February 9th, I received an email from Representative Cheri Gerou:
Thank you for your e-mail and your involvement in the legislative process. As you are probably aware, the Colorado Senate approved the passage of HB 1193 during second reading on Monday evening. It is scheduled for a final vote and will pass.
Please know that I fought hard to defeat this bill and I voted against this tax increase. I understand the impact that will result with this legislation. You may have seen the editorial in the Denver Post, they are opposed to this tax. Perhaps the Governor will choose not to sign this legislation - right now, I believe that is our only hope.
I wish I had better news to share.
Best regards,
Cheri
I pointed Cheri to the PMA Blog and she responded on February 10th:
Hi Anne-Marie -
Thank you for your e-mail. I actually couldn't say where the bill will end up. Until we see the bill back on the floor of the House, we won't know what will happen. I guess the best advice is to "stay tuned."
Cheri
Huh? This is where I started pulling out my hair especially when I got an email from Representative Joe Miklosi TODAY that stated:
In regard to HB 1193, the legislation will require online retailers to collect sales tax from Colorado residents who purchase products online if the retailers have an affiliation with a Colorado company that actively engages in solicitation on behalf of the retailer. The sales tax must only be collected if the retailer's cumulative gross receipts from Colorado sales generated by all affiliates in the state exceeds $10,000 in the preceding year.
It is important to remember that we are dealing with sales tax that is legitimately owed to the state of Colorado. It is also important to remember that the current situation has a very adverse effect on our own Colorado retailers who must collect sales tax, particularly independent book sellers who compete with huge out-of-state companies like Amazon. Those of us who go to local stores and purchase products from our local businesses must pay sales tax, and those local small business owners must collect the tax and pay the state. By allowing these large out of state retailers to avoid paying Colorado sales tax, we are not only adversely affecting our state services, we are hurting our local small businesses.
Do our state representatives really know what’s going on? Or have the PMA been hoodwinked in believing something that isn’t true?
What do you think?
