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Colorado: Lawsuit over sales tax notification and reporting requirements settles

In the closely watched case Direct Marketing Association v. Brohl, the Direct Marketing Association, now known as the Data & Marketing Association (DMA), sued Colorado for its allegedly unconstitutional 2010 law subjecting internet retailers to notification and reporting requirements when the retailers cannot be required to actually collect the taxes. The law was the state’s attempt to capture some of the tax revenue lost to purchases over the internet when the seller has insufficient nexus with Colorado to be subject to tax collection laws.

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