DENVER -- If you point, click, and purchase online, be prepared to pay state and local sales tax on those items beginning at the end of this year.

The Internet Sales Act, which was signed into law by Governor Bill Ritter on Feb. 23, created a means of enforcing a tax law that already existed.

"It's actually a tax obligation that's due prior to the adoption of this law," said Mark Couch, of the Colorado Department of Revenue. "It's just that there was no means of tracking all of those purchases."

The law requires online retailers to notify you of your tax obligation, both at the time of checkout and in a year-end statement.

Additionally, retailers with more than $100,000 in sales are required to notify the state of the amount each Colorado customer spent in a given year. They will not include information about what you purchased, just the amount spent.

At the end of the year, you will fill out a Consumer Use Tax Return (DR 0252), write a check, and send it in before the April 15 deadline. Failure to do so could result in a 10-percent penalty.

While the new law will create more paperwork and expense for customers, some businesses are singing its praise. A local camera retailer said it has leveled the playing field in the buy local or buy online debate, especially for big ticket items.

"Fairly often, we hear from customers that, 'Gee, you know, it's nice that you have all this service and selection, but I can buy it online and save the sales tax,'" said Jirair Christianian, of Colorado-based Mike's Camera.

In other words, you can no longer opt to pay for shipping to avoid paying state and local sales tax.