Colorado Government Kills Revenue Stream For Colorado Residents

In typical blundering fashion our Colorado state government has screwed up again. In a misguided attempt to make Internet based companies collect sales tax for them, they passed HB1193. Governor Bill Ritter pushed this as a revenue boost for the state, but in reality it looks like it will be a loss. Because of this push Amazon has suspended all of their Colorado affiliate accounts. This could result in as much as a 7.5 Million dollar loss for Colorado businesses this year.

The worst part about this whole mess is that other states have passed similar laws with similar results. Rhode Island, North Carolina and New York are all experimenting with this. The Colorado legislature could have waited until the dust settled in these other states before taking this on.

For a good analysis of this story read the Developer Dispatch article Colorado and Amazon Battle and People Like Me Suffer. I would also recommend The Write Spot, LLC, great ongoing articles about this issue there.