Federal Judge Nixes Colorado Tax Statute Because of Reporting Requirements

A U. S. District Court Judge has ruled that a Colorado statute enacted in 2010 intended to encourage out of state sellers to tell their customers that they owe in state sales tax is unconstitutional because “the veil provided by the words of the act and the regulations is too thin to support the conclusion that the act and the regulations regulate in-state and out-of-state retailers even-handedly.” The online retailer Amazon and other sellers had opposed the law. Other states which have similar laws include California and New York. Because Amazon has been so outspoken about this kind of tax statute, it has been dubbed the “Amazon tax” law.