U.S. Supreme Court declines to hear challenge to Colorado internet sales tax law

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WASHINGTON — The U.S. Supreme Court on Monday declined to take up a a challenge to a Colorado law requiring out-of-state internet retailers to tell customers what they owe in state sales taxes.

A lower court ruling was left standing by the justices. Online retailers claimed the law discriminates against interstate commerce, but a federal appeals court said it did not.

The retailers, represented by industry trade group Direct Marketing Association, challenged the law because it only applied to companies outside of the state.

The law doesn’t force the retailers to collect taxes, just to tell customers what taxes are owed and to report the purchases to the Colorado Department of Revenue.

The retailers then turn over customers’ names, addresses and purchase amounts to Colorado authorities.

In 1992, the U.S. Supreme Court banned states from forcing out-of-state retailers to collect taxes if they don’t have a physical presence in the state.