Planet Telex CEO Rob Dixon will testify before the Colorado State House regarding HB 1192 as a representative of small software businesses. The goal of the bill is to increase tax revenues, which is understandable since the state needs the revenue. Rob has two overarching concerns about the bill which he hopes to impart to the representatives. The first is that only a handful of states have this particular software tax, and therefore the bill may stall growth in this sector in our state. The second is that tracking and auditing of the transfer of bits is nearly impossible for the purposes of tax collection. This new law essentially relies on the honor system and has a lot of loopholes.
Rob's opinion is that while the goals of bill are admirable, it is a deeply flawed piece of legislation that will only add noise to our legal system instead of clarifying. It doesn't appear to be enforceable in any meaningful way, and for all of this isn't even projected to generate very much revenue. Some even argue that this bill violates the existing TABOR amendment in the state. For all these reasons, Rob will testify that he believes this bill will cause more problems than solutions.
Despite arguments from Rob as well as other business leaders of small, medium, and large businesses, HB 1192 passed 4-3. A close margin, but a defeat nonetheless. Read Rob's final thoughts on the subject.