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:
- A federal judge rules Colorado’s online tax law unconstitutional (Internet Retailer)
- Courts Reject Big Brother Tax Law in Colorado (Performance Marketing Association)
Vice President, Marketing