Amazon kills affiliate program in Colorado

[n2doc]

By Jacqui Cheng | Last updated about 15 hours ago

Amazon has pulled the plug on its affiliate program in Colorado thanks to a new state regulation on sales tax collection. The company sent a notice to its Colorado-based affiliates Monday morning to let them know about the decision, urging residents who depend on the affiliate program to contact their lawmakers if they want the program back.

Most states only require retailers to collect sales tax if they have a sufficient enough brick-and-mortar presence thanks to a 1992 Supreme Court decision on Quill Corp. v. North Dakota. Despite this, a handful of states have tried to pass laws in recent years (often dubbed the "Amazon Tax") that would force Amazon to start collecting sales tax if their affiliates—that is, those who use Amazon's affiliate links on their own sites or blogs in order to earn a return on referrals—are based in those states.

The Colorado law in question is HB 10-1193, which targets sales made by affiliates through out-of-state retailers such as Amazon. Because the affiliate lives in Colorado and is "targeting" other Colorado residents (in sort of a roundabout way via the Internet, since the Internet really targets everyone in the world), state legislators feel that Amazon should collect and pay Colorado sales taxes.

According to Amazon's e-mail to affiliates posted by Global Geek News, "he 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."

more:

http://arstechnica.com/tech-policy/news/2010/03/amazon-kills-affiliate-program-in-colorado-thanks-to-taxes.ars

[MissMarple]

1. Here's a video link to the CO senate leader's response. I'm supporting the boycott.

And, I encourage others to do so, as well. They want to use our infrastructure for free while they undercut our local businesses. It reminds me of a two year old screaming, "Me! Me! Me!". They ditch their affiliates while continuing to sell to Colorado residents. Classy. :eyes:

http://coloradopols.com/diary/11784/a-lesson-to-the-others

[Wildewolfe]

2. here is the exact amazon letter to affiliates

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 and to Governor Ritter , 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

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What you don't see here are the embedded links to the General Assembly and Governor Ritter's Office so you can bitch about it.

What made it even better were the *2* how to start making money as an Amazon affiliate messages that accompanied the one above... both from Amazon.