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High court won't hear challenge to internet sales tax law

December 12, 2016

The Supreme Court of the United States won't hear a challenge to a Colorado law that requires out-of-state internet retailers to tell customers how much they owe in state sales taxes.

The justices on Monday let stand a lower court ruling that said the law doesn't discriminate against interstate commerce, as online retailers had claimed.

An industry trade group representing retailers challenged the law as unconstitutional because it applies only to companies outside the state. A federal appeals court rejected that challenge.

Colorado's law doesn't require internet retailers to collect taxes, but requires them to tell customers what taxes are owed and report purchases to the state government. A 1992 Supreme Court decision bans states from forcing out-of-state retailers to collect taxes if they don't have a physical presence in the state.
 

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