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News & Press: Colorado Technology Industry

Judge blocks Colorado online-retailer law

Thursday, January 27, 2011   (0 Comments)
Posted by: Nikki Mill
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Judge blocks Colorado online-retailer law

Denver Business Journal
Date: Thursday, January 27, 2011, 5:54am MST - Last Modified: Thursday, January 27, 2011, 6:57am MST

A U.S. District Court judge in Denver has granted a preliminary injunction to temporarily block a Colorado law involving out-of-state online retailers, the Associated Press reports.

The law requires online retailers to report to the Colorado Department of Revenue what consumers owe in sales-and-use taxes from previously untaxed online sales. It also makes online sellers who don't charge Coloradans sales tax notify their customers how much they owe the state.

In response to the law, which was adopted early last year, online retail giant notified web-based affiliates across Colorado in March 2010 that it is dropping them. (DBJ report here.)

U.S. District Judge Robert Blackburn issued the injunction Wednesday at the request of the Direct Marketing Association, which is challenging the Colorado law, the AP says.

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