For over 50 years, Bloomberg Tax’s renowned flagship daily news service, Daily Tax Report® has helped leading practitioners and policymakers stay on the cutting edge of taxation and...
By Tripp Baltz
The Data & Marketing Association and Colorado are in talks to resolve the DMA’s suit against the state’s requirement that certain out-of-state retailers report information about consumer purchases to the state if they don’t collect and remit state sales taxes ( Direct Mktg. Ass’n v. Brohl, Colo. Dist. Ct., No. 13-CV-34855, status report 1/17/17 ).
In a Jan. 17 status report on the 2013 lawsuit filed by the organization, formerly the Direct Marketing Association, the parties said they have entered into discussions “for the possible resolution of all of the DMA’s claims.” The discussions are ongoing, and the DMA said it expects them to be complete “well in advance of” the next status report to the court in April.
The DMA is challenging Colorado’s law that requires out-of-state companies who don’t collect and remit taxes on remote sales to provide annual reports on consumer purchases and to notify consumers of their obligation to pay sales taxes. The suit, pending in the Colorado District Court in Denver County, includes claims under the commerce clause, the First Amendment, the right of privacy and the takings clause.
The case was stayed pending resolution of a similar federal lawsuit. In December, the U.S. Supreme Court denied a petition to review an earlier ruling by the U.S. Court of Appeals for the Tenth Circuit finding the law constitutional. In its latest brief, the DMA proposes the court continue the stay “pending the completion of the parties’ settlement discussions.”
In the federal case, the DMA alleged the Colorado law, approved by the state General Assembly in 2010, violated the interstate commerce clause by imposing on out-of-state sellers requirements not binding on in-state retailers. In a cross-petition to the U.S. Supreme Court, the state asked the court not to take the appeal, but if it did decide to review the case, to also consider overturning its foundational nexus standard in Quill Corp. v. North Dakota,504 U.S. 298 (1992).
That ruling bars a state from requiring a remote vendor from collecting sales taxes if the vendor doesn’t have a physical presence in the state.
To contact the reporter on this story: Tripp Baltz in Denver at email@example.com
To contact the editor responsible for this story: Ryan C. Tuck at firstname.lastname@example.org
Text of the brief is at http://src.bna.com/lEk.
Copyright © 2017 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)