Internet sales tax law tossed

April 4, 2012

A Colorado law passed in 2010 intended to encourage online retailers to collect sales tax has been struck down by a federal judge. (Denver Post)

U.S. District Judge Robert Blackburn’s decision permanently blocks implementation of the law — which already had been put on hold by an earlier judicial ruling. Such a law would “impose an undue burden on interstate commerce,” Blackburn wrote.

Courts have always concurred that online retailers cannot be forced to collect taxes from customers.

“Enforcing a reporting requirement on out-of-state retailers will, by definition, discriminate against the out-of-state retailers by imposing unique burdens on those retailers,” Blackburn ruled.