Huffpost Denver

Colorado Tax Laws Could Make It Fourth State To Tax Online Retailers

Posted: Updated:

DENVER — Colorado is considering becoming the fourth state to force online retailers like Amazon to charge state sales tax.

The Senate Finance Committee backed the proposal late Thursday. The House has already approved the measure, one of 13 tax bills proposed to balance the state budget.

Colorado retailers back the bill, saying online retailers should have to collect taxes just as they do.

But small, home-based businesses that earn money by linking customers to online stores fear that change could cost them their livelihoods.

The state revenue department says products sold through these affiliates will be exempt from sales tax. But the businesses fear online stores could abandon them anyway rather than risk being forced to collect taxes in Colorado.