'Amazon Tax' A Legislative Target After Judge's Ruling

A federal judge's decision to block Colorado's so-called Amazon Tax has emboldened the state's Republicans to take legislative action against the measure.

Passed by the Colorado Legislature during the 2010 legislative session, HB 10-1193 sought to address an enormous state budget gap by requiring large online retailers to either start collecting sales taxes, or provide the state with a summary of customers' web purchases.

Amazon responded to the bill by cutting off relationship with associates in the state who refer people to the company's products.

On Wednesday, U.S. District Judge Robert Blackburn honored a preliminary injunction request from the Direct Marketing Association, effectively halting any income the state might receive from the law.

He wrote the following in his ruling:

"The Act and the Regulations impose a notice and reporting burden on these out-of-state retailers and that burden is not imposed on in-state retailers, except for the very few in-state retailers who defy their statutory sales tax obligations. Given these circumstances, I conclude that the plaintiff has shown a substantial likelihood that it will succeed in showing that the Act and the Regulations are discriminatory because, in practical effect, they impose a burden on interstate commerce that is not imposed on in-state commerce.

House Repiublicans are responding to the ruling by saying it buttresses their initial objections.

"I hate to say 'I told you all so,' but 'I told you all so,'" said Republican Amy Stephens. Stephens plans to introduce legislation that would repeal the amazon tax.

Deomocratic Senate Majority Leader John Morse told the Colorado Statesman that his party would object to such an effort.

"It's best to let the case run its course" and go through the appeals process, he said.