The requirement to report data to the state was also targeted by a bill (S.B. 238) defeated during the 2017 regular session of the Colorado General Assembly. NetChoice and other advocates of e-commerce companies argue the requirement violates consumer privacy.
The direction in which the work group is headed demonstrates that the MTC, “as usual,” is “blithely unaware of the consequences of their legislative aspirations to expand state tax powers,” Steve DelBianco, executive director of NetChoice, told Bloomberg BNA May 25.
“It would be impossible for a marketplace or payment facilitator to know the taxability of all goods and services offered by all their third-party sellers, when purchased by a given customer in a certain state at a specific time,” he said. “How, for example, could Etsy know whether a scarf made by a small business in South Dakota is taxable when sold to a customer in Connecticut?”