The Data & Marketing Association has reached a settlement with Colorado concerning that state's attempt to tax products sold online—a case that has twice been considered by the U.S. Supreme Court.

Colorado is one of several states in recent years that have passed laws requiring the collection of sales taxes from products sold online even if the retailer does not have a physical presence in the state. Such taxes are commonly known as "Amazon taxes," taking their name after the online retailer.

DMA sued Colorado in a 2010 challenge to the state's authority to enact such a law. At first, Colorado officials challenged the association's ability to bring the case in federal court, but the U.S. Supreme Court ruled that federal courts did have jurisdiction in the case. A lower court later upheld the law and the Supreme Court declined to review the decision.

In a statement, DMA said the settlement keeps the law in place but states that direct marketers will not be liable for any penalties for past periods. The agreement also specifies that compliance obligations will not commence until July of this year.

"While disappointed the Supreme Court did not take up the issue, we are pleased to announce this settlement which provides clarity for how the law will be enforced against out-of-state marketers once the injunction lapses, ensuring that all notice and reporting requirements will not begin until July 1, 2017," said Emmett O'Keefe, DMA's senior vice president of advocacy. http://bit.ly/2lPR9mN

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