Colorado Judge Rules Against Online Sales Tax

By: AP
By: AP
A federal judge has thrown out Colorado

DENVER (AP) -- Colorado's tax on online retailers such as has been thrown out by a federal judge.

U.S. District Judge Robert Blackburn ruled that the 2010 law did not treat in-state and out-of-state retailers even-handedly.

The Denver Post reported that the Colorado Department of Revenue did not immediately say whether it planned to appeal the ruling, which was issued Friday. Blackburn's ruling leaves the status quo in place; the court blocked the law on a temporary basis last year.

Cash-strapped states across the country are grappling with how to capture the sales tax revenues that go uncollected from online purchases. Congress has debated a federal regulation of online sales taxes, but not agreed on a regulation.

Amazon has said it prefers a single nationwide online sales taxing scheme.

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  • by Long term growth Location: America on Apr 4, 2012 at 05:03 AM
    It would be nice to see a flat tax on everything, fair to all. Internet, end of year as well. Instead of "the more you make the more they take" motto that ultimately makes it hard for anyone to ever get ahead. With all the problems in society today, one would think there would also be a tax credit for Made in the USA. That would be fair and assist the economy. It would appear a loss, but this would allow everyone to afford the taxation, thus resulting in eventual more generated revenue. People would not get behind on paying tax, because they could afford it. So its a matter of thinking long term for everyones best interest. Greed stifles growth, and thats what we've got here. Obviously there needs to be a re evaluation or the economy would never have plummeted in the first place. Taking more and more is not the answer to overall growth. It will cut down on consumer spending thus resulting in less revenue in the long haul.
    • reply
      by jazzcat on Apr 4, 2012 at 02:57 PM in reply to Long term growth
      Not gonna happen! The current tax scheme is as much a political weapon as it is a revenue collection tool. The more complex it is, the more flexibility officials have in its use (which is why a regular 'Joe' could be treated much worse than a potential Treasury Secretary for the same offense).
  • by C on Apr 3, 2012 at 06:18 PM
    M, How much do you expect the states to cut back? The only solution is to tax online sites such as ebay and amazon. Many of the items sold on these sites were obtained illegaly so why not tax them to help makeup some costs to society. I do not shop on these sites.
    • reply
      by Anonymous on Apr 3, 2012 at 07:37 PM in reply to C
      Yippee for you. Now, if you actually USED Amazon maybe you'd see that their stuff is NOT obtained illegal. Don't spout off at the mouth unless you know what you're talking about. You're probably in your 50's or older, which is why you "do not shop on these sites".
      • reply
        by C'mon, on Apr 3, 2012 at 08:42 PM in reply to
        I'm over fifty and hardly shop anywhere but on-line. Your just as bad as C above.
        • reply
          by Anonymous on Apr 4, 2012 at 06:05 AM in reply to C'mon,
          Sorry c'mon, yes I am just as bad. I just can't stand that "since I don't use them so they're all crooks" attitude that I see from your age group. C obviously has no idea what Amazon is and this person would blindly vote on an issue involving Amazon potentially harming their business, all based on a belief that their goods are obtained illegally.
  • by M on Apr 3, 2012 at 04:07 PM
    What's wrong with keeping it the way it is and only applying taxes to the states that have a physical location there? States are always hurting for money, but instead of trying to cut back they just think of ways to to get more.
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