US Supreme Court will rule on Colorado tax lawsuit

The fight over which court has authority to rule in the battle over Colorado’s Internet tax law will be decided by the U.S. Supreme Court.

According to the Denver Post, the federal 10th Circuit Court of Appeals claimed it has no jurisdiction to rule over a state tax-related case.

At the center of the suit is the state’s Collection Act, dubbed the “Amazon tax,” that requires extensive reporting by retailers that don’t collect the state’s 2.9 percent sales tax from Colorado customers.

The Direct Marketing Association, a trade organization that represents thousands of businesses, filed a suit in federal court in 2010, claiming the tax law is invalid because it violates the Commerce Clause of the U.S. Constitution that protects companies that do business in other states.