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Colorado Judge Rules Against Online Sales Tax

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(credit: ThinkStock)

(credit: ThinkStock)

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DENVER (AP) – Colorado’s tax on online retailers such as Amazon.com 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.

(© Copyright 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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