On January 26 2011, a federal district court judge in Colorado issued a preliminary injunction to prevent a controversial tax on online retailers from going into effect.
Out-of-state retailers were understandably jubilant about the outcome.
"The decision serves as a healthy warning for other states that passing these types of laws invites costly and unnecessary lawsuits," said Kelly Cobb, government affairs manager at Americans for Tax Reform, an organisation that advocates for tax cuts.
Some state legislators were less enthusiastic about the verdict.
Colorado is only one of a growing number of states beginning to look at changes to the state tax laws to raise revenue to cut their mounting deficits.
Sixteen states across the country have considered enacting new tax laws that would target out-of-state businesses. Three states, New York, North Carolina, and Rhode Island, have already done so.
Some laws, like the one in Colorado, apply to any...
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