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Business Group Challenges ‘Amazon Tax’

by Ari | 5:49 pm, July 1, 2010 | 1 Comment

Earlier this year, the Democrat-led Colorado legislature foolishly passed the “Amazon Tax” in an attempt to collect sales taxes on goods purchased from out of state. The measure caused Amazon and other businesses to end their affiliates programs in Colorado and threatened Coloradans’ privacy rights. See RepealTheAmazonTax.com for more information and argument.

Today I received the following media release announcing a legal challenge to the tax bill:

Rep. Stephens Applauds Challenge to Internet Tax
Complaint Based on Consumer Privacy Concerns, Loss of Colorado Jobs

State Rep. Amy Stephens, R-Monument, today applauded the legal challenge filed against Colorado’s new Internet sales tax policy, recently authorized by House Bill 1193.

“We have said from the beginning that this proposal jeopardizes consumer privacy and gives the government a frightening amount of access to information about personal purchases and services,” said Stephens. “The bottom line is, it’s none of the government’s business what someone wants to buy online.”

Stephens helped lead the fight against HB 1193, a Democrat-sponsored budget balancing proposal that mandates sales tax collection for online purchases.

It was announced yesterday that the Direct Marketing Association filed a lawsuit in Federal District Court in Colorado challenging the new law as unconstitutional. The DMA cited privacy violations because the new law requires companies to turn over confidential purchasing history information to the Colorado Department of Revenue. The DMA also claims the law unfairly discriminates against interstate commerce.

“I wholeheartedly agree with the concerns raised by the legal challenge,” Stephens said. “These are problems even the sponsors of the bill recognized. Unfortunately, the tax proposal was still rushed through the legislature, causing concern for consumers and leading to the immediate loss of Colorado jobs.”

Immediately following passage of the bill, it was announced that Amazon would no longer be working with its 4,200 affiliates in Colorado.

Prior to filing the lawsuit, the DMA, along with several other entities, registered their concerns about HB1193 with the legislature, with the governor, and with the Department of Revenue during its rulemaking process.

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Comments

  1.   CTBC Director
      July 2nd, 2010 @ 8:41 am

    This court challenge was totally predictable – indeed, practically inevitable – as I stated in testimony before the Senate Finance Committee as they were considering this blatantly unconstitutional (both state and Federal) bill.

    Despite their attempts to exploit an interpretation of the Colorado Supreme Court ruling that seemed to give a “green light” to bypassing that pesky requirement to ASK FIRST before taking money from Colorado citizens via any “tax policy change” (Article X, Section 20 of the Colorado Constitution), the legislature should have known better (plenty of people told them) that this law would be challenged – with very likely success – in court.

    It’s worth noting that the challenge was filed in Federal court, not in the state courts, because the plaintiffs clearly understand that the Colorado Supreme Court has established a pattern of failing to uphold the law (as written) and that the current majority on the court would have a vested interest in striking down any challenge to the tax increase law since it relied explicitly on an interpretation of their ruling in the “Mill Levy Tax Freeze” case. It’s a sad state of affairs when businesses and consumers cannot count on the courts in our state to uphold the rule of law.

    Defend the rule of law – avoid future violations of your rights by voting “NO” on the unjust justices of the Mullarkey Majority on the Colorado Supreme Court.

    Clear The Bench, Colorado!
    http://www.clearthebenchcolorado.org/2010/07/01/as-predicted-amazon-tax-exploiting-colorado-supreme-court-ruling-enabling-unconstitutional-dirty-dozen-tax-increases-challenged-in-federal-court/

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