Question

In 2010, Colorado became the first state to require nondomiciliary businesses without sales tax nexus to report all the necessary information to the Colorado Department of Revenue so that Colorado could collect its use tax from its resident individuals and domiciliary businesses. Assume you are responsible for sales tax issues for an online retailer from another state. You believe that the Colorado tax is unconstitutional based on a seminar you attended and the advice of your accounting firm. Would you recommend that your company comply with the Colorado law? Would your opinion change if the court placed an injunction prohibiting the state from enforcing the new law?

I need to about 300 words. Not asking for the paper to be written for me. More looking to see a summary or bullet points to sum up the best way to anser the question. Thanks!

Answer 1

Part 1

Yes.
Company should comply with Colorado law.
By doing so the company will avoid the exposure of being sued due to non compliance with Colorado law
and
Reduce litigation possibilities in future.

Part 2

Injunction is temporary. So, Company should comply with Colorado law even If court placed an injunction prohibiting the state from enforcing the new law.
Reasons -
1. If Court find the Law constitutional and Company is already complying it and it don't need to spend much.
2. If Court find the Law constitutional and Company not previously complying the law then it need to spend more to comply and adjust as well.
3. If Court find the law unconstitutional and Company is complying it, it won't cause any loss.