Injunction Against CO’s Remote Seller Reporting Requirement Expires!

The notice bellow comes form the Colorado Department of Revenue:

In 2010, the Colorado Legislature passed HB 10-1193, establishing reporting requirements for non-collecting retailers. The Department adopted regulation 39-21-112.3.5, regarding the administration of those requirements. The State’s law was challenged in federal court and the court entered an injunction enjoining the Department’s enforcement of the law and regulations. That injunction was dissolved on December 10, 2013.

This notice is intended to provide guidance to non-collecting retailers regarding their obligations under the law and regulation.

Because the law has until recently been under an injunction prohibiting enforcement, the Department will not enforce any penalties for failure to comply during the period the injunction was in place. Specifically, the Department will not assess penalties for failure to comply with the law for calendar years 2010 through 2013. The Department also will not assess penalties for a retailer’s failure to comply with the January 31, 2014 deadline to provide annual purchase summaries to their customers or the March 1, 2014 deadline to provide the annual report to the Department for their 2013 purchases.

The Department is cognizant of litigation challenging the law in state district court, including the request by the Direct Marketing Association for a preliminary injunction against enforcement of the law. Should the law become subject to an injunction, the Department will review the scope of the injunction and, if necessary, provide further guidance regarding enforcement.

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