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Affiliate Nexus Tax Law in Colorado Struck Down as Unconstitutional

Affiliate Marketers received some good news in Colorado the other day.  A judge struck down the affiliate nexus law that was passed in 2010 but never enforced. The law did not require out-of-state retailers to collect the tax but rather required those with more than $100,000 in sales to inform their consumers in Colorado that they were required to pay the tax and then also share that information with Colorado state tax authorities.

In a strongly worded decision the judget deemed the law was unfair and discriminatory against out-of-state online retailers. Judge Robert Blackburn, of the U.S. District Court wrote “The Act and the Regulations [of the Colorado law] directly regulate and discriminate against out-of-state retailers and, therefore, interstate commerce,” wrote Blackburn.

Here are some additional articles on the topic worth reading:

Scott Allan
Vice President, Marketing