Colorado’s Amazon Law Revived by Appeals Court

By Sally P. Schreiber, J.D.

Court Decisions

The permanent injunction that a federal district court issued in March 2012 enjoining Colorado from enforcing its Amazon law requiring remote sellers to report sales in the state has been dismissed by an appeals court. The Tenth Circuit held that the Tax Injunction Act (28 U.S.C. §1341) precludes federal jurisdiction over the Direct Marketing Association’s claim that Colorado’s law requiring out-of-state retailers to report information about customers’ purchases to each customer and to the Colorado Department of Revenue (DOR) violates the Commerce Clause of the U.S. Constitution ( Direct Marketing Ass’n v. Brohl , No. 12-1175 (10th Cir. 8/20/13)).

As a result, the Tenth Circuit remanded the case to the district court to dismiss the Commerce Clause claims and lift the permanent injunction the lower court had imposed prohibiting the DOR from enforcing the law (Direct Marketing Ass’n v. Huber, No. 1:10-CV-01546-REB-CBS (D. Colo. 3/30/12)). Any further proceedings in the case must begin in Colorado’s courts or administrative agencies.

Newsletter Articles


Directions in Individual Taxation

This article covers recent developments in the area of individual taxation, including the treatment of support payments and IRA and qualified plan distributions, the Sec. 469 material participation rules, and the taxability of state economic development credits.


2015 Tax Software Survey

See how nearly 5,000 paid CPA tax preparers rated the strengths and weakness of major tax preparation software products they used in 2015.