Local direct mailers say passage of a tax bill facing the Colorado General Assembly would hurt direct-mail marketers and their clients.
House Bill 1189, introduced by Jack Pommer, D-Boulder, vice chair of the Joint Budget Committee, is up for consideration tomorrow in the House Appropriations Committee.
It would eliminate state sales- and use-tax exemptions for direct-mail advertising materials. The bill would, however, allow local taxing authorities to continue exempting direct mailers from the tax.
The Senate sponsor is Boulder Democrat Rollie Heath.
“Any tax of this sort is bound to have a depressing effect on commerce,” said Patty Coldwater, marketing director of the Mail Room Inc., and a past president of the Rocky Mountain Direct Marketing Association.
The tax, Coldwater added, would unfairly target direct mail, since free-standing newspaper inserts are specifically exempted from the bill, which she said is intent on “finding yet another defenseless revenue source.”
The direct-mail bill is part of a package of significant tax increase proposals introduced by Democrats that would cost jobs and violate TABOR provisions, according to Brian DelGrosso, R-Loveland.
“Along with being illegal,” he said, “many of these new taxes will be devastating to businesses in Colorado and lead to higher unemployment, and many more years of poor economic conditions here in our state.”
Colorado Libertarians have listed the measure as one of the nine worst bills facing the 2010 Legislature.
Wednesday’s hearing starts at 1:30 p.m in Room A of the Legislative Services Building, across from the State Capitol.
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Comments
Say what? The bill summary says that "Commencing March 1, 2010, the bill eliminates the state sales and use tax exemption..." So, I don't think this is a tax increase, it is enforcing a tax break that has been in effect.
So, if a company paid $500 in taxes in 2009, and will pay $750 in 2010 because of this bill, that $250 is not a tax increase? We're ALL exempted from paying taxes ... until we have to pay them; when we have to pay them, that's a tax increase.
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