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Colorado Strikes Down Internet Tax Measure

PRIVACY LAW—U.S.

April 5, 2012

The U.S. District Court of Colorado has halted efforts to institute an Internet tax on Colorado families and businesses, The Denver Post reports. The court entered a permanent injunction against a measure that would have required out-of-state online businesses to report online Colorado consumers to the state's Department of Revenue so it could penalize consumers for failing to pay a "use tax" on Internet purchases, the report states. The court found that the measure discriminates against and "imposes an undue burden" on remote sellers. The Colorado ruling follows a similar one in North Carolina, which addressed First Amendment and privacy concerns in relation to the reporting.
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