Judge temporarily blocks Colorado e-tailing law

A Denver District Court judge has issued a preliminary injunction preventing Colorado from enforcing a law requiring retailers that don’t charge customers Colorado’s sales tax to report on purchases and sales to consumers and the revenue department.

The Denver Post reported Thursday that Judge Morris Hoffman said in his injunction ruling issued late Tuesday that his conclusions are preliminary, but that he found the law’s reporting and notification requirements to be discriminatory.

The Direct Marketing Association, which represents thousands of businesses, went to court arguing the law is unconstitutional and places an unfair burden on companies like Amazon that do big business on line.

The Colorado Department of Revenue argues retailers doing substantial business in a state should not be shielded from “reasonable state laws.”