Tenth Circuit Holds Colorado's Sales and Use Tax Reporting Law Does Not Violate Dormant Commerce Clause

Tenth Circuit Holds Colorado's Sales and Use Tax Reporting Law Does Not Violate Dormant Commerce Clause

The U.S. Court of Appeals for the Tenth Circuit reversed the district court and held that a Colorado law requiring remote retailers to alert customers to their use tax responsibility and report customer information to the Colorado Department of Revenue does not violate the dormant commerce clause.

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The U.S. Court of Appeals for the Tenth Circuit reversed the district court and held that a Colorado law requiring remote retailers to alert customers to their use tax responsibility and report customer information to the Colorado Department of Revenue does not violate the dormant commerce clause. The court held the law does not facially or directly discriminate against interstate commerce and does not impose an undue burden on interstate commerce, and it noted that Congress is better qualified to solve the issue of when states may enforce sales tax requirements on interstate sellers.

The U.S. Court of Appeals for the Tenth Circuit reversed the district court and held that a Colorado law requiring remote retailers to alert customers to their use tax responsibility and report customer information to the Colorado Department of Revenue does not violate the dormant commerce clause. The court held the law does not facially or directly discriminate against interstate commerce and does not impose an undue burden on interstate commerce, and it noted that Congress is better qualified to solve the issue of when states may enforce sales tax requirements on interstate sellers.