U.S. District Judge Robert Blackburn has upheld a permanent injunction on a Colorado law that would have required out-of-state online retailers to report their in-state customers’ purchases to Colorado tax authorities and notify those customers of the resulting sales tax owed to the state. The reporting requirement was a violation of the commerce clause in the Constitution, the judge ruled. It discriminated against out-of-state retailers because it did not make the same requirement of in-state retailers.
Loading ...
Colorado Ruling May Hamstring E-Commerce Tax Collection Efforts
Posted by: Erika Morphy April 5, 2012 12:30 PMU.S. District Judge Robert Blackburn has upheld a permanent injunction on a Colorado law that would have required out-of-state online retailers to report their in-state customers’ purchases to Colorado tax authorities and notify those customers of the resulting sales tax owed to the state. The reporting requirement was a violation of the commerce clause in the Constitution, the judge ruled. It discriminated against out-of-state retailers because it did not make the same requirement of in-state retailers.