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Colorado's Internet sales tax battle

"We know the power of social media marketing and the Internet, so let's use it to kill this bill," said Miles Baker of Fort Collins in a video for

House Bill 1193 (which narrowly passed the House and awaits Senate action) is part of a package of business-tax hikes sought by Gov. Bill Ritter and the Democratic-controlled legislature.

"We collect the sales tax for the government and firmly believe that Internet retailers should, too," wrote Christopher D. Howes, president of the Colorado Retail Council in support of HB 1193, responding to Denver Post columnist Vincent Carroll, who called it "atrocious legislation" that could results in hundreds of jobs lost.

Today, the Performance Marketing Association claimed victory, saying that the key provision of the Colorado bill affecting affiliate Internet marketers would be removed.

UPDATE: Rossputin gives his analysis of the bill as it stands and concludes, "As I told Senator Brophy, the day I get a letter from the State of Colorado saying that I owe them sales tax on something I purchased online from an out-of-state retailer is the day I decide to move out of Colorado. I guarantee I won’t be the only one."

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