Colorado's H.B. 1193: Is This Approach to E-Commerce Taxation The Solution That Cash-Strapped States Have Been Waiting For?

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Colorado H.B. 1193, which imposes new reporting requirements on internet retailers, has generated considerable controversy in the state in the wake of Amazon.com's decision to drop its in-state web marketing affiliates in protest. But for other states eager to stem the erosion of their sales tax base, the bill presents an alternative to the so-called “Amazon” tax measures adopted in New York, North Carolina, and Rhode Island. In this article, BNA looks at the reasons why states are turning to such measures and what the prospects are that such bills can withstand the inevitable constitutional challenges.

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