Direct Marketing Association Challenges Colorado Sales Tax Law
The Direct Marketing Association has filed a lawsuit against Colorado's Internet sales tax law, or notification requirements imposed on out-of-state retailers as a result of HB 1193. For details of HB 1193, see previous posts.
The DMA suit asserts that the law and regulations violate both the United States Constitution and the Colorado Constitution. The DMA’s complaint details how the new law:
- Discriminates against interstate commerce;
- Exceeds the permissible scope of state regulatory authority over out-of-state companies;
- Violates the right to privacy of Colorado consumers;
- Infringes upon the free speech and due process rights of both consumers and retailers; and
- Exposes confidential consumer information to the risk of unauthorized disclosure.
In previous posts, I mentioned that lawsuits were expected to be filed. Whether or not this lawsuit will be successful remains to be seen. If the Colorado notification requirements apply to your company, you will want to keep a close eye on this case.
Please contact me at firstname.lastname@example.org if you would like me to personally contact you with changes or updates regarding this case.
Brian Strahle is the owner of LEVERAGE SALT, LLC where he provides state and local tax technical services to accounting firms, law firms and tax research organizations across the United States. He also writes a weekly column in Tax Analysts State Tax Notes entitled, "The SALT Effect." For more info, visit his website: www.leveragestateandlocaltax.com
You can reach Brian at email@example.com.
Because state and local taxes are deceptively simple and endlessly complicated.