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Colorado’s Tax Turnover

We got a Rocky Mountain high after hearing news that the U.S. District Court for the District of Colorado upheld Article 1 of the Constitution and struck down one of the most noxious state tax grabs in recent history.

The Colorado Use Tax Reporting Regime was enacted in February 2010 and promptly earned a top spot on the iAWFUL list.  The bill would have required state retailers to mail both consumers and tax enforcers a list of online purchases made in the calendar year.

Beyond the onerous and expensive compliance costs associated with this bill, the creep factor was shockingly high.  Even without considering the eventual mail mix-ups where Mr. Smith was sent Mrs. Doe’s online shopping list – and other personally identifiable information – the idea of government officials caring for a growing mountain of personal and potentially embarrassing information was a bridge too far for the judges.

We couldn’t agree more and are happy to see Colorado’s tax experiment sent back to the wilderness where it belongs.