Direct Marketers Win Round 1 
in Tax Collection Case

"The decision by the court should be applauded. Unfortunately, this tax proposal was rushed through the legislature, causing concern for consumers and leading to the immediate loss of Colorado jobs. … This court ruling is just one step in the long process of repealing this unconstitutional tax."

The Colorado notice and reporting law is just one example of aggressive state laws intended to "end run" the constitutional restrictions on the scope of state taxing authority. Other approaches have included seizing upon online retailers' relationships with web affiliates, challenging click-and-mortar business structures, and limiting vendors' rights to sell to state agencies unless they "voluntarily" register for sales/use tax collection in connection with all their consumer sales into the state.