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Abstract: 

The Supreme Court’s recent decision in Direct Marketing Association v. Brohl should be good news to financial institution organizations seeking to challenge what may be viewed or considered unreasonable reporting demands by a state. The Court held that the Tax Injunction Act did not bar a retailers’ trade association from challenging a Colorado requirement that out-of-state retailers provide the Colorado Department of Revenue with an annual report regarding sales to Colorado customers and comply with customer notice requirements regarding a Colorado customer’s obligation to remit use tax on its purchases. While the opinion did not address the underlying merits of the trade association’s case, it confirmed the procedural approach taken by the association to challenge the reporting and notice requirements set forth in the state’s 2010 legislation.

Keywords: Direct Marketing Association v. Brohl; Tax Injunction Act; Commerce Clause; reporting by out-of-state vendors

Affiliations:  1: Bryan Cave LLP.