Question

In 2010, Colorado became the first state to require nondomiciliary businesses without sales tax nexus to report

all the necessary information to the Colorado Department of Revenue so that Colorado can collect its use tax from its resident individuals and domiciliary businesses. Assume you are responsible for sales tax issues for an online retailer from another state. You believe that the Colorado tax is unconstitutional based on a seminar you attended and the advice of your accounting firm. Would you recommend that your company comply with the Colorado law? Would your opinion change if the court placed an injunction prohibiting the state from enforcing the new law?

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