U.S. Supreme Court Denies Certiorari for Direct Marketing Association v. Brohl; Colorado Online Retailers Must Still Provide Customer Information

DALLAS, Dec. 15, 2016 /PRNewswire/ -- The U.S. Supreme Court ("Court") denied hearing the appeal from the Tenth Circuit Court of Appeals decision in Direct Marketing Association v. Brohl, which held that Colorado's notice and reporting requirements did not unduly burden or discriminate against interstate commerce.¹ Please refer to our previous analysis of the Tenth Circuit Court of Appeals decision, Online Retailers Must Provide State of Colorado with Customer Information; U.S. Court of Appeals Issues Judgment in Direct Marketing Association v. Brohl.

The Court also denied certiorari for a conditional cross petition by the Colorado Department of Revenue (DOR). The DOR wanted to reframe the question presented by Direct Marketing Association as whether a state law that seeks to enforce the existing and constitutional use tax within the limitations of Quill v. North Dakota, 504 US 298 (1992) runs afoul of the anti-discrimination principles of the dormant Commerce Clause. The DOR wanted the Quill decision to be overturned, as it gives competitive advantage to online retailers.²

It's important to note that unlike other state online nexus cases, this denial by the Court requires retailers to obtain and disclose to the Department of Revenue much of the detailed nature of the purchases. We have not seen other states take this form of compliance, but with the Court denying certiorari, it may buoy other states to whittle away at Quill's power by enacting laws similar to Colorado. While this method of bypassing Quill is an anomaly, we hope this does not portend a trend in 2017.  

¹ Direct Marketing Association v. Brohl, No. 12-1175 (10^th Cir. 2016), cert. denied (U.S. December 12, 2016) (No. 16-267).
² Direct Marketing Association v. Brohl, No. 12-1175 (10^th Cir. 2016), conditional cross-petition for cert. denied (U.S. December 12, 2016) (No. 16-458).

About Ryan
Ryan is an award-winning global tax services firm, with the largest indirect and property tax practices in North America and the seventh largest corporate tax practice in the United States. With global headquarters in Dallas, Texas, the Firm provides a comprehensive range of state, local, federal, and international tax advisory and consulting services on a multi-jurisdictional basis, including audit defense, tax recovery, credits and incentives, tax process improvement and automation, tax appeals, tax compliance, and strategic planning. Ryan is a five-time recipient of the International Service Excellence Award from the Customer Service Institute of America (CSIA) for its commitment to world-class client service. Empowered by the dynamic myRyan work environment, which is widely recognized as the most innovative in the tax services industry, Ryan's multi-disciplinary team of more than 2,100 professionals and associates serves over 12,000 clients in more than 40 countries, including many of the world's most prominent Global 5000 companies. More information about Ryan can be found at ryan.com.

TECHNICAL INFORMATION CONTACT:

Jeremiah T. Lynch
Principal
Ryan
212.847.0113
[email protected]

Available Topic Expert(s): For information on the listed expert(s), click appropriate link.
Jerry Lynch
ProfNet - http://www.profnetconnect.com/jeremiahlynch

SOURCE Ryan

Related Links

http://www.ryan.com