Colorado vs. Amazon

Posted in: General, Society

This is really frustrating…

Dear Colorado-based Amazon Associate:

We are writing from the Amazon Associates Program to inform you that the Colorado government recently enacted a law to impose sales tax regulations on online retailers. The regulations are burdensome and no other state has similar rules. The new regulations do not require online retailers to collect sales tax. Instead, they are clearly intended to increase the compliance burden to a point where online retailers will be induced to “voluntarily” collect Colorado sales tax — a course we won’t take.

We and many others strongly opposed this legislation, known as HB 10-1193, but it was enacted anyway. Regrettably, as a result of the new law, we have decided to stop advertising through Associates based in Colorado. We plan to continue to sell to Colorado residents, however, and will advertise through other channels, including through Associates based in other states.

There is a right way for Colorado to pursue its revenue goals, but this new law is a wrong way. As we repeatedly communicated to Colorado legislators, including those who sponsored and supported the new law, we are not opposed to collecting sales tax within a constitutionally-permissible system applied even-handedly. The US Supreme Court has defined what would be constitutional, and if Colorado would repeal the current law or follow the constitutional approach to collection, we would welcome the opportunity to reinstate Colorado-based Associates.

You may express your views of Colorado’s new law to members of the General Assembly [ http://www.leg.state.co.us/Clics/CLICS2010A/csl.nsf/directory?openframeset= ] and to Governor Ritter [ http://www.colorado.gov/cs/Satellite/GovRitter/GOVR/1177024890452 ], who signed the bill.

Your Associates account has been closed as of March 8, 2010, and we will no longer pay advertising fees for customers you refer to Amazon.com after that date. Please be assured that all qualifying advertising fees earned prior to March 8, 2010, will be processed and paid in accordance with our regular payment schedule. Based on your account closure date of March 8, any final payments will be paid by May 31, 2010.

We have enjoyed working with you and other Colorado-based participants in the Amazon Associates Program, and wish you all the best in your future.

Best Regards,

The Amazon Associates Team

UPDATE: Brad has a thoughtful piece on this.

Popularity: 1% [?]

Posted March 8th, 2010 @ 8:31 AM

4 Replies

  1. Geof F. Morris adds this Comment:

    You may use my referrer code, and I’ll buy you plane tickets to come play the Robert Trent Jones Golf Trail with the proceeds … ;)

    March 8th, 2010 at 9:56 am

  2. Iolaire McFadden adds this Comment:

    The affiliate form ABestWeb has a sub forms dealing with this issues in the various states contemplating these laws. Colorado’s form is at: http://forum.abestwe[...]ay.php?f=590

    Unfortunately the on slot of these laws means that anyone who generates any money based on affiliate links needs to get political and communicate to their representatives just how their small/personal/large business will be affected.

    March 8th, 2010 at 10:10 am

  3. Iolaire McFadden adds this Comment:

    Also I forgot to mention that their are large companies such as Buy.com that are happy to accept your CO sales and collect CO sales tax. Driving traffic to such a store might work for some.

    March 8th, 2010 at 10:15 am

  4. links for 2010-03-08 | GFMorris.com adds this Pingback:

    [...] Colorado vs. Amazon | alexking.org (tags: gfmorris_comment) [...]

    March 8th, 2010 at 7:30 pm

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