DMA to sue Colorado over Internet sales tax law

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New York—The Direct Marketing Association said it will sue the state of Colorado over its recently passed sales tax initiative targeting Internet purchases.

Rather than demanding sales tax payment directly from Internet e-commerce companies, Colorado’s law, known as HB 10-1193 and passed in March, would require online sellers to divulge customer purchase information for later tax-collection efforts targeting those customers.

The DMA said this is an intrusion of consumer privacy, as well as unconstitutional based on previous Supreme Court rulings.

The American Catalog Mailers Association also has lobbied against Colorado’s new law and is participating in the DMA’s legal efforts.

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