Colorado

Aug 2, 2010 4:06 PM by Bea Karnes, News First 5

Colorado seeks dismissal of lawsuit over online taxes

Colorado officials are asking a judge to dismiss a lawsuit challenging the state's new online sales tax law.

The law requires larger out-of-state, online retailers to either collect sales tax or send customers an annual notice of how much tax they owe to Colorado. It also requires retailers to provide a list of customers who spend more than $500.

The Direct Marketing Association contends the law violates free speech and privacy laws.

Colorado officials contend in documents filed in U.S. District Court that the association can't challenge the law as a third party, that a person's purchases don't constitute free speech protected by the First Amendment, and that the law seeks only limited customer information.

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