The U.S. Supreme Court refused Monday to take up a challenge by the Data & Marketing Association to a Colorado law that allows the state to collect sales taxes from online purchases.

States currently have little legal authority to collect sales taxes on products purchased via the Internet if the retailer does not have a physical presence in the state. So-called "Amazon taxes"—which take their name from online retailer Amazon.com—are attempts by states like Colorado to fix what they view as a major loophole in current tax law.

DMA (previously the Direct Marketing Association) challenged the law on constitutional grounds and scored a victory last year when the Supreme Court overturned an appellate court ruling finding federal courts lacked jurisdiction in the case. The high court's decision allowed the association to move forward with its lawsuit.

DMA's triumph was short-lived. In February, the 10th U.S. Circuit Court of Appeals overturned a lower court order ruling blocking Colorado from enforcing the tax. The Supreme Court ruled against reviewing the decision Monday, Bloomberg news service reported. http://bloom.bg/2hpsfXo

In a statement, Emmett O'Keefe, DMA's senior vice president of advocacy, said the association was proud to have brought the lawsuit despite the outcome.

"We are disappointed the Supreme Court did not take the case and are concerned it will only encourage other states to adopt similar laws and regulations that are designed to put arbitrary burdens on out-of-state sellers," he said. "This is an issue Congress should address as the Constitution explicitly gives the legislative branch the authority to regulate interstate commerce."

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