In March 2012, a federal district court concluded that Colorado’s use tax notice and reporting law discriminated against and placed undue burdens on interstate commerce in violation of the Commerce Clause of the US Constitution. The court entered a permanent injunction prohibiting enforcement of the notice and reporting requirements.
On August 20, 2013, a federal appellate court found that the federal district court did not have jurisdiction over the matter and, therefore, the injunction should be dissolved. Out-of-state retailers selling products to Colorado customers should be aware of the state’s notice and reporting requirements and understand when such obligations could go into effect. [Direct Marketing Ass’n v. Brohl, 10th Cir. Ct. of App., No 12-1175 (8/20/13)]