Recent actions under Colorado's golden dome have now cost some Coloradoans a source of income.

The progressive tax policies of Colorado Governor Bill Ritter and the Democrat-led state legislature have now forced a loss of income on hundreds if not thousands of Coloradoans.  Their choice to push for collection of sales tax on out of state sales has caused Amazon.com to shut down its affiliate program for all Colorado residents. 

The state legislature passed HB 10-1193 – “Concerning the collection of 101 sales and use taxes on sales made by out-of-state retailers.”  This bill forces online retailers without a presence in the state to report back to the state online purchases made by Colorado residents. 

The goal of course was to try to force online retailers to collect Colorado sales tax from their customers.  This would effectively raise the tax burden on any Colorado taxpayer who shops online.  Let us also not forget the ‘Big Brother’ aspect of the state being told what you were buying online!

Thornton’s state legislative delegation enthusiastically supported the measure including Representatives Ed Casso, John Soper and Judy Solano. 

The Amazon Affiliate program allows websites to display ads for Amazon products.  When a visitor to the site follows the link to Amazon, the website owner makes a commission on the sale.  An untold number of ‘mom and pop’ online businesses and websites operated by Coloradoans have used this program as part, if not all, of their income. 

Today, Amazon.com told the affiliates they would no longer be allowed to participate in the program.  In emails sent to these entrepreneurs, Amazon said the new regulations were ‘burdensome.”

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.
~ Amazon.com in an email to its associates.  Complete text of the email is below.

Rather than make the hard decisions and implement real budgetary controls, the legislature and governor passed on a bevy of additional tax burdens to Colorado taxpayers and now they have cost some residents their very livelihood. 

Amazon is certainly the biggest to make these moves but it won’t be the last.  In recent years, Colorado has become increasingly unfriendly to business and this simply continues the trend.  Sadly, it is you and I who will pay the price. 

Complete text of email sent to Colorado-based Amazon Affiliates, March 8, 2010.

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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