Politicians the world around spend their time scheming ways to separate their constituents from their money.
Anyone involved in online marketing we should be aware that states cannot force an online merchant to collect sales tax unless the merchant has a physical presence within the state. Of course, the states are very upset because the residents still have a bit of money in their pockets and the politicians hadn’t been able to get their hands on it.
Colorado came up with a new scheme. The state has a use tax and wanted the online merchant to report the purchases to the state, thereby helping the state chase down the miscreant citizens. But, a Federal Judge ruled that the Colorado law was unconstitutional.
Colorado’s reporting law “imposes a differential burden on out-of-state retailers because the different burden is imposed precisely because the retailer is an out-of-state retailer” who is exempted by the Supreme Court from paying sales tax in Colorado, Blackburn wrote. “Only a change in the law by the Supreme Court or action by Congress can change the situation” and allow states to reach out-of-state retailers, he concluded.