DMA And DOR Move For Summary Judgment As Modifying Legislation Dies In Colorado General Assembly

On January 26, 2011, Judge Robert Blackburn of the United States District Court for the District of Colorado sided with the Direct Marketing Association ("DMA") and enjoined the Colorado Department of Revenue (the "Department") from enforcing the novel use tax notice and reporting requirements enacted in 2010. The Department appealed Judge Blackburn's grant of the preliminary injunction to the Tenth Circuit Court of Appeals but voluntarily dismissed the appeal after the district court judge entered a stipulated order under which the parties agreed to submit cross-motions for summary judgment on the Commerce Clause issues without further discovery. The DMA and the Department filed their respective summary judgment motions on May 6, 2011. Meanwhile, the Colorado General Assembly considered legislation that would partially repeal the law at issue in the DMA's challenge and, if passed, render the litigation moot.