Reckless and misguided laws, often originating at the state level, threaten to undermine the foundation of the free and open Internet. Some of the most serious threats to the Internet come in the form of lawmakers trying to 'fix' it.

Knee-jerk, overly prescriptive laws can destroy whole business models or stifle innovative new forms of communication before they have a chance to emerge. Too many laws are proposed without considering unintended harm they may cause to thousands of Internet companies and millions of Internet users.

NetChoice is dedicated to fighting these attacks on core Internet principles. Through this site, the Internet Advocates' Watchlist For Ugly Laws (iAWFUL) will track dangerous legislation and mobilize citizens to defeat bills and proposals that threaten the future of ecommerce and online communication. The list will be continually updated to reflect the most immediate dangers, based on regulatory severity and likelihood of passage.

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I-AWFUL (Internet Advocates' Watchlist for Ugly Laws) is a NetChoice Initiative Dedicated to Tracking the Worst Internet Laws in America

Revenue Rulings by Colorado and Washington State Tax Administrators Create New Digital Download Taxes

What's AWFUL? Discriminates against goods and services sold online versus offline.

The Colorado Department of Revenue recently issued a ruling that would impose sales tax on any service or subscription where users can download or print documents or web pages. Services aren’t taxed in Colorado, but this ruling makes them taxable if the service is provided online. Just emailing a document to a customer would make an otherwise nontaxable service into a taxable digital good.

In addition, the Washington Department of Revenue issued a draft rule that taxes all digital products, regardless of how they are accessed (downloaded, streamed, subscription service, networking, etc.). Washington broadly defines “digital good” to encompass a variety of things, even digital schematics of a lawnmower transferred electronically to a repair shop! What’s more troubling is that the ruling suggests that payments for displaying online advertising would suddenly become a taxable event.

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