Business Group Challenges ‘Amazon Tax’

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 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.