Colorado Passes House Bill 1193: A 2.9 % "Internet Tax" Imposed on Online Purchases

Saturday, February 12th, 2011

 
 
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General

As states continue to struggle with revenue shortfalls, legislation is aimed at increasing an otherwise decreasing funding source; taxes. Interestingly, most states 'legally' require anyone who purchases goods online to self remit a sales tax (typically called a 'use tax') on their online purchases. However, very few individual consumers ever comply with this legal requirement.

Due to the difficulty of self-compliance and inability to audit every resident of a state, lawmakers look toward those who are accustomed to collecting tax; businesses. This appears to be the path that Colorado is headed down. Assuming this law passes, and withstands scrutiny, this may be the first of many laws aimed at 'forced compliance' with laws passed long ago, but rarely followed.


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Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

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