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Internet tax repeal gets support

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Friday, May 6, 2011 10:35 PM

DENVER — A repeal of last year’s “Amazon tax” on Internet sales gained bipartisan support this week.

House Bill 1318 passed the House 58-6, with Republicans and all but six Democrats supporting it.

It tells Internet retailers like Amazon to include a link to the Department of Revenue website when they send receipts to customers. The receipt also has to tell customers that they owe taxes on their purchases.

The bill takes away the state’s power to subpoena sales records from companies. Democrats passed the subpoena bill last year, both to gain tax revenue and to put online companies on the same footing as local stores that pay sales taxes.

But Internet companies sued, and a federal judge has blocked the law.

“It was a good bill, but it’s turned out to be counterproductive. It’s a bust,” said Rep. Sue Schafer, D-Wheat Ridge, who voted for last year’s bill and is now sponsoring the repeal effort.

HB 1318 will take effect only if the lawsuit is dropped.

Gov. John Hickenlooper’s spokesman, Eric Brown, offered qualified support.

“We think the bill is an improvement over the current situation. While we’d like to see a more level-playing field that doesn’t disadvantage Main Street businesses, we recognize this bill is a step in the right direction,” Brown said in an email.



Reach Joe Hanel at joeh@cortezjournal.com.

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