Colorado Internet Sales Tax Struck Down



A federal judge has struck down a law that would tax Internet sellers in Colorado.

In his ruling, U.S. District Court Judge Robert E. Blackburn wrote that the law in question “directly regulates and discriminates against out-of-state retailers and, therefore, interstate commerce,” which brings it into conflict with the Commerce Clause of the U.S. Constitution, and the Supreme Court ruling, Quill Corp. vs. North Dakota.

“Only a change in the law by the Supreme Court or action by Congress can change this situation,” the judge wrote.

The ruling is in response to a complaint against the law brought by the Direct Marketing Association.

The decision comes as other states continue to try and pass laws meant to collect Internet sales tax. Georgia’s legislature reportedly passed a bill that would mandate sales tax collection on Internet companies.

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