Update: It appears that the claim that Colorado’s regs require disclosure of the item purchased is not accurate, and that I’ve fallen victim to, and am perpetuating by repeating, false information. If so (and I believe now it is), I apologize to every person I made stupider. Mea culpa.
Remember when you used to actually have to go to a store (pronounced, “/stôr/”) to buy stuff before you had the internet? Good times, right? But with the shift to online buying came the bane of a bureaucrat’s existence, loss of sales tax revenue. Without funds, they have no fiefdom can’t make your world wonderful.
And despite sales tax being terribly regressive, it’s beloved by governments everywhere, as it’s collected when your wallet is already out by someone else, who suffers your ire even though they only collect, not charge, it. But the shift to online shopping, combined with the Supreme Court’s Quill decision, stood to choke the life out of state and local governments. All that money changing hands, and they couldn’t get any of it.
Sure, they could pass laws requiring residents to keep track of their own purchases, calculate the sales tax and pay it as a “use tax,” but there was a problem: nobody would do it.*
Colorado, not satisfied with having a Rocky Mountain high, sought to make an end run around Quill. While the Court held that states could not compel out-of-state sellers with no in-state presence to collect and remit sales taxes, it didn’t hold that the state couldn’t require sellers to tell them stuff so they could find out which of their citizens were cheating the state out of its loot. Continue reading →