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.