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U.S. appeals court upholds Colo.’s right to tax Internet sales

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DENVER (AP) — A federal appeals court has ruled Colorado’s law requiring large online retailers to collect millions of dollars in state taxes on Internet sales is legal.

The court ruled Tuesday a lower court overstepped its jurisdiction in tossing out the law last year.

The law passed in 2010 requires Internet companies to collect Colorado’s 2.9 percent tax on purchases.

The Denver Post reports the 10th Circuit Court of Appeals has lifted a permanent injunction issued by a lower court last year.

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