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Amazon closes all associate accounts based in Colorado

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pcnerd37

Senior member
Thanks the the tax loving idiots that seem to run Colorado, Amazon has closed all of the associate (affiliate) accounts based in Colorado. Colorado recently passed some new tax for online sales so in protest, Amazon decided to close all of the associate accounts in the state (mine included). This will be a source of income that I will miss greatly as it was one of the primary sources of income for my podcasts and blogs. I'm not sure how many people this effects, but at least 3 other people effected by this have let me know they are in the same boat since I blogged about it this morning. [link]. Here is the email that was sent out this morning that I posted for all the world to see in hopes that this gets enough attention to have the tax repealed like has happened in several other states.

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
Click to expand...
 
Well, if people in Colorado who purchased from Amazon hadn't cheated on their taxes than Colorado wouldn't have had to do this, and Amazon wouldn't have had to do that.
 
I heard they are trying to do this in California. Basically, the state makes a law that says if Amazon pays you for "marketing" their product within the state, they must collect sales tax on the transaction. Amazon has no intention of building out all the complexity needed to do this, so they fire their associate sites.

Sorry to hear it.
 
Who's to blame?
The tax cheats in Colorado and New York.
Blame them, not Colorado or New York.

In fact, here's an idea.
If out of state suppliers aren't responsible for collecting sales tax, than in state suppliers shouldn't either.
 
techs said:
Well, if people in Colorado who purchased from Amazon hadn't cheated on their taxes than Colorado wouldn't have had to do this, and Amazon wouldn't have had to do that.
Click to expand...

The problem is that this legislation does not get people in Colorado who purchase from Amazon (or any other web merchant with no operations in CO) to start paying taxes, it just causes Amazon to fire its associates.
 
techs said:
Who's to blame?
The tax cheats in Colorado and New York.
Blame them, not Colorado or New York.

In fact, here's an idea.
If out of state suppliers aren't responsible for collecting sales tax, than in state suppliers shouldn't either.
Click to expand...


Hey, how about castration for those who seek to increase taxes without cutting their pet programs instead?

We aren't fucked for not paying taxes in NY, it's the damn politicians who want spend spend and spend some more without reform.

I forgot about female politicians. A funnel and some concrete would do.
 
AMDZen said:
Its a shame our state is quickly becoming a nanny state

Thanks liberals
Click to expand...

What an easy explanation. Maybe you should look at what most conservatives consider the golden goose. Yes, the internet retailers who are not adding to the tax revenue stream.
 
Stupid liberal tricks FTL. Good for Amazon. Perhaps the voters will get smart and vote the idiots who did this out of office next election.
 
So instead of mandating sales tax collection like they do in NY, what does this bill force Amazon to do? I'm not clear on this.
 
Legendary said:
So instead of mandating sales tax collection like they do in NY, what does this bill force Amazon to do? I'm not clear on this.
Click to expand...

This would require Amazon to collect tax even if the seller/retailer has no physical presence in the state. It also mentions a use tax even if the retailer has no physical presence in the state. It may even be unconstitutional which is why Amazon is reacting the way they are.

http://www.leg.state.co.us/CLICS/CL...3882B4B872576A80026BE0C?Open&file=1193_01.pdf
 
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