Supreme Court rejects trade groups challenge to Colorados internet sales tax
Source: Reuters
12 DEC 2016 AT 10:10 ET
The U.S. Supreme Court on Monday left in place a Colorado law dubbed the Amazon tax designed to make it easier for the state to collect sales taxes on out-of-state internet purchases, refusing to hear a challenge to it by an industry trade group.
The justices declined to take up the Direct Marketing Associations appeal of a February ruling by the 10th U.S. Circuit Court of Appeals in Denver upholding the law, whose nickname refers to huge online retailer Amazon.com Inc.
The action by the justices handed a victory to states seeking to boost revenue by ensuring that online shoppers pay state taxes on their purchases.
The 2010 law was enacted to encourage residents to pay the 2.9 percent sales tax on purchases they make out-of-state, including from online retailers. Companies operating within the state collect the sales tax themselves but out-of-state companies are not required to do so. The law requires them to notify consumers that they are required to pay the tax.
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