View the full Legal Alert. 

Today the U.S. Supreme Court unanimously held in Direct Marketing Ass’n v. Brohl that the Tax Injunction Act does not bar Direct Marketing Association’s federal lawsuit against Colorado’s sales tax reporting regime. The substantive challenge to the constitutionality of the reporting regime will continue at the Tenth Circuit. Continue reading

By Evan Hamme and Timothy Gustafson

The Colorado Department of Revenue issued guidance to a taxpayer operating a colocation and hosting facility, which provided customers a place to securely store computer servers, on whether certain charges imposed by the taxpayer were subject to sales and use tax. Specifically, the taxpayer requested guidance on the applicability

By Mary Alexander and Timothy Gustafson

The Colorado Department of Revenue determined that a mail-order seller was required to collect state and local sales tax on orders shipped to localities where it had established nexus and state use tax (and any applicable special district use tax) on all other sales shipped to customers in Colorado.

By Stephanie Do and Pilar Mata

The Colorado Department of Revenue determined that an out-of-state S corporation was not subject to Colorado income taxes and was not required to register with the Department. The S corporation provided information technology consulting services and designed accounting software systems. One of the S corporation’s clients was located in

By Kathryn Pittman and Andrew Appleby

A Colorado state district court issued a preliminary injunction preventing the Colorado Department of Revenue from enforcing Colorado’s out-of-state seller use tax reporting statutes and related regulations. These rules require out-of-state sellers that do not collect Colorado sales tax to notify their Colorado purchasers—and the Department—of the amount of

By Kathryn Pittman and Andrew Appleby

The Colorado Department of Revenue determined that sales of digital images, whether delivered electronically or via tangible medium, are sales of tangible personal property for income tax apportionment purposes. The taxpayer was engaged in the business of providing digital images to commercial and government customers and provided such images

By Saabir Kapoor and Andrew Appleby

After the U.S. Court of Appeals for the Tenth Circuit denied an en banc rehearing on October 1, 2013, the Direct Marketing Association (DMA) is expected to bring suit in Colorado District Court to challenge the constitutionality of the Colorado law that requires out-of-state retailers without a physical presence

By Zachary Atkins and Prentiss Willson

The Colorado Supreme Court held that the Colorado Division of Property Taxation did not violate a public utility’s equal protection and uniformity rights by valuing and taxing its property differently than cable companies’ property. The public utility, Qwest Corporation, is a telecommunications service provider that competes with cable companies for

By Zachary Atkins and Pilar Mata 

The Colorado Department of Revenue issued a private letter ruling permitting a financial institution to deviate from Colorado’s special industry rules and use an alternative method of apportionment for corporate income tax purposes. The taxpayer, a savings and loan holding company with subsidiaries separately engaged in broker-dealer and

By Saabir Kapoor and Andrew Appleby

The Colorado Department of Revenue (Department) determined that sales tax does not apply to a subscription fee for an interactive stock screening service. The taxpayer, a financial news and research organization, offered proprietary web-based stock screening tools to customers for a monthly subscription fee. To determine whether the subscription