09/01/2010 05:12 am ET Updated May 25, 2011

Direct Marketing Association Suing Colorado Over Online Retail Tax

The Direct Marketing Association is suing to overturn Colorado's so-called "Amazon tax" that applied sales tax to affiliate sales in the state for the first time.

The lawsuit, filed in U.S. District Court for Colorado in Denver, challenges provisions of the law requiring online retailers to report to the Colorado Department of Revenue what consumers owe in sales and use taxes from previously untaxed online sales.

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