Oppose Colorado’s Video Game Tax (HB 1418)
Colorado's HB 1418 would add a 5% tax on in-game purchases made by video game players in the state.
This bill introduces a new, unavoidable cost that may be passed directly on to consumers. For players in Colorado, who are already facing a rising cost of living, this could mean paying more for digital entertainment.
The bill also relies on the unfounded assumption that video games are a primary driver of youth mental health challenges. In reality, mental health is shaped by many complex factors. Video games can provide various mental health benefits such as social connection, stress relief, and positive cognitive engagement.
There is also no clear guarantee that the Colorado gamers paying this tax will receive the youth mental health services the revenue generated from the bill is intended to support – whether it be they are too old to receive the services, or simply don't need them.
Finally, implementing this tax would likely require companies to collect and verify user location data to determine tax eligibility. This introduces new privacy concerns for players and expands the amount of personal data being gathered in order to make in-game purchases.
We are asking for your support in urging lawmakers in Colorado to oppose HB 1418.
I strongly urge you to vote NO on Colorado HB 1418. As a Colorado resident who buys games and occasional in-game items, I'm already feeling the squeeze from higher groceries, housing, and utilities—and this bill adds an unavoidable new cost for everyday players.
A 5% tax on in-game purchases will be passed directly to consumers, yet many players may never see the mental health services their money is supposed to fund. It also wrongly treats video games as a singular driver of the youth mental health crisis, even though games can be a healthy outlet and a source of community. Worse, requiring companies to determine tax eligibility by collecting location data raises serious privacy concerns.
Please stand up for affordability and privacy in your state—oppose HB 1418 and encourage your colleagues to do the same.
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