Colorado judge rules against online sales tax

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DENVER (AP) — Colorado's tax on online retailers such as Amazon.com has been thrown out by a federal judge.

U.S. District Judge Robert Blackburn ruled that the 2010 law did not treat in-state and out-of-state retailers even-handedly.

The Denver Post reported that the Colorado Department of Revenue did not immediately say whether it planned to appeal the ruling, which was issued Friday (http://goo.gl/2AotU ). Blackburn's ruling leaves the status quo in place; the court blocked the law on a temporary basis last year.

Cash-strapped states across the country are grappling with how to capture the sales tax revenues that go uncollected from online purchases. Congress has debated a federal regulation of online sales taxes, but not agreed on a regulation.

Amazon has said it prefers a single nationwide online sales taxing scheme.

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