CRBC Board Plans for 2011

CRBC met January 29 for its annual board planning meeting. In keeping with our frugal nature, we met at our Chairman's home.

Among the topics discussed were as follows:

• Growing our membership
• Influencing legislative action
• Monthly program content
• Small Business Donor Committee fundraising
• New media outreach
• Adding corporate dues structure

Individual membership dues for 2011 continue at the discounted rate of $25. To join or renew, click here.

High priority legislation:

• Structural reform of the Colorado State budget
• Reforming PERA from a Defined Benefit to a Defined Contribution
• Repeal many of Ritter's "Dirty Dozen" especially losing the tax exemption on energy use
• a likely November ballot initiative to put a sales tax on services

Chairman Christine Burtt commented, "The CRBC Board is a great group of small business owners and managers. We are all volunteers working hard on your behalf to help small business in Colorado."

--CRBC Board of Directors

Governor Defends Amazon Tax

Earlier this week Federal Judge Robert Blackburn ruled Colorado's Amazon tax unconstitutional. The tax on Amazon and other online retailers imposed during last-year's session contributed to the shutdown of all Amazon affiliate small businesses throughout the state last March.

Even with the preliminary ruling, the law has a surprising defender: Colorado Governor John Hickenlooper. The Durango Herald reports (via ColoradoPols):

“They should all pay taxes,” Hickenlooper said. “Is it fair that our local bookstores are being beat up with all these sales over the Internet?”

He thinks the federal government might have to come up with a fair solution.

“I’m not saying we should tax the Internet. I’m just saying that we need a level playing field,” Hickenlooper said.

Governor John Hickenlooper has made overtures to the business community. While certainly more business-friendly than Governor Ritter's administration, Hickenlooper sometimes reveals his pro-tax and protectionist views. However, he is fundamentally correct that federal action is the only recourse for defenders of this law.

The United States Supreme Court has a history of disallowing states to collect sales tax from retailers who do not have a physical presence in that state. The 2010 law not only violated Colorado's Taxpayer's Bill of Rights (TABOR) but also is in conflict with case law. The bill tried to put the burden of information collection on the Internet company who the state would require itemized receipts to be mailed to each customer. Rather than comply with this paperwork requirement, Amazon ceased its affiliate program which shut down Colorado small businesses. These affiliates paid income tax on the sales they made, thus depriving Colorado from more tax revenue.

Republicans in Colorado's house will introduce a bill to repeal the Amazon tax in the House soon, but its prospects remain grim with a Democratic-led Senate and a lukewarm governor. In any case, Colorado cannot enforce this tax collection in the near future.

--David Carpenter