STATE BILL COLORADO
U.S. District Judge Robert Blackburn on Wednesday issued a preliminary injunction that keeps Colorado from enforcing a 2010 law imposing an online sales tax on retailers such as Amazon.com.
Blackburn’s ruling, published below, was disclosed in a press release issued by State House Majority Leader Amy Stephens. The case doesn’t directly involve Amazon but a trade association, the Direct Marketing Association, which is challenging provisions it says are unenforceable under the Commerce Clause.
“The decision by the court should be applauded,” Stephens said. “Unfortunately, this tax proposal was rushed through the legislature, causing concern for consumers and leading to the immediate loss of Colorado jobs.”
Stephens’ news release also is published below.
Majority Leader Stephens Praises Amazon Tax Court Ruling
Plans to Introduce Legislation to Repeal Online Retailer TaxState House Majority Leader Amy Stephens, R-Monument, today is praising a court ruling by the U.S. District Court of Colorado that has granted a preliminary injunction against enforcing, House Bill 10-1193, the controversial tax on online retailers, such as Amazon.com, and on Colorado consumers.
In a decision issued late yesterday afternoon, the court ruled that the law shall not be enforced due to violations of the Commerce Clause of the United States Constitution while litigation continues.
“House Republicans have questioned the constitutionality, and the rationale, of this online tax since it was introduced,” Stephens said. “We knew from the beginning that this tax placed an undue burden on businesses and consumers across Colorado, and the nation.”
The law is being challenged by the Direct Marketing Association as unconstitutional. In addition to Commerce Clause concerns, the DMA has repeatedly cited privacy issues arising from the requirement that companies turn over confidential purchasing history information to the Colorado Department of Revenue.
“The decision by the court should be applauded,” Stephens said. “Unfortunately, this tax proposal was rushed through the legislature, causing concern for consumers and leading to the immediate loss of Colorado jobs.”
The law mandated online retailers to start collecting use tax, or to provide information about online purchases made in Colorado in order for the state to collect taxes on the transactions. Passage of the law led to an Amazon.com decision to end their association with 4200 Colorado marketing associates.
Majority Leader Stephens still plans on introducing legislation to repeal the entire online retailer tax.
“A full repeal of the Amazon tax is still necessary,” Stephens said. “This court ruling is just one step in the long process of repealing this unconstitutional tax. I am hopeful that with this most recent decision, along with a full repeal by the legislature, we will see these jobs return to Colorado.”
