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Amazon Kills Affiliate Program In Colorado
Amazon has pulled the plug on its affiliate program in Colorado thanks to a new state regulation on sales tax collection, reports arsctechnica.
The company sent a notice to its Colorado-based affiliates 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.
Photo by Amazon.
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Angela Shupe on March 16th, 2010 3:17 am
I heard about that. I think it bites. They’re basically punishing their affiliates for what the state is doing.
I don’t know how other states work it but when I do my Michigan taxes they have a section where you’re supposed to tally what you’ve bought off the internet that didn’t include Michigan taxes in the purchase price and pay it that way. If they’re not already doing it, I think other states would benefit from that approach. After all, it is the lack of taxing on internet purchases that has the state government so fired up in the first place. With the way they’re working it now they’re only hurting those that try to make a few dollars through the affiliate program. I doubt that even bothers Amazon. And, for what it is worth, it wouldn’t kill the consumer to pay the same sales tax for an item they bought online as they would have paid in store.
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