The Denver Post Says NO to Colorado HB-1193

Today’s Denver Post editorial, Eliminate some of state's tax exemptions, came out against HB-1193:

We also have concerns about House Bill 1193, which would amount to what some call the "Amazon tax." The bill would require online retailers to collect sales taxes from state residents if the retailers have an affiliate in the state that actively solicits on behalf of the retailers.

Retailers with stores in the state who have to compete with online retailers make a good point about the relative disadvantage they are at by having to collect sales taxes when online interests do not.

But that is an issue that should be addressed at the federal level given a 1992 U.S. Supreme Court decision that said it would be unduly burdensome to force retailers to collect sales taxes on behalf of other states.

We are concerned the Colorado bill would prompt court challenges, as similar measures have in other parts of the country, and ultimately result in costing more than it raises, which is estimated at $4.7 million a year.

It would be wiser to wait until this issue is settled by federal law before attempting to collect such a tax.

They also ran a guest commentary, Equity for Main St. retailers in Colorado, by Christopher D. Howes, president of the Colorado Retail Council in response to Vincent Carroll’s column, Amazon buyers, beware: State has it in for you.

What Howes fails to realize is that if the law passes, Amazon and other online merchants will cancel their affiliate programs to protect their tax status. Even if they didn’t, they’d still have advantages over brick and mortar stores such as price, selection and convenience.

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