Tenth Circuit Says Colorado’s Use Tax Reporting Statute Does Not Violate Commerce Clause

Overview


Stephen Kranz predicted that a Tenth Circuit decision upholding Colorado sales tax reporting by Internet retailers will prompt other states to “ run with this victory and impose unheard-of burdens on remote sellers unless Congress acts now to put in place a federal framework that provides for destination-based sales tax collection and eases administrative burdens.” Mr. Kranz added, “I hope anyone who thought that the states would eventually compromise to an origin-based system understands that the states have now been permanently emboldened.”