Colorado has enacted law (HB 10-1193) to impose sales tax regulations on online retailers. This includes online marketers that make money by referring buyers, as in the case of Amazon, who fired it’s Colorado affiliates in an email dated March 8, 2010 (see our post for the full text of the Amazon email).
Let the finger pointing begin.
Colorado Republicans are saying “I told you so.” Democrats are blaming Amazon. The following statement comes from a press release on the Governor’s site:
Governor Bill Ritter’s statement on Amazon.com
Gov. Bill Ritter issued the following statement today criticizing Amazon.com’s decision to abruptly end its financial relationship with Amazon Associate businesses in Colorado:
“Amazon has taken a disappointing – and completely unjustified – step of ending its relationship with associates. While Amazon is blaming a new state law for its action, the fact is that Amazon is simply trying to avoid compliance with Colorado law and is unfairly punishing Colorado businesses in the process.
“My office worked closely with Amazon’s affiliates and associates to modify House Bill 1193 to specifically protect small businesses, avoid job losses and provide a fair, level playing field for on-line retailers and Main Street, brick-and-mortar retail shops alike.
“Amazon’s position is unfortunate, and Coloradans certainly deserve better.”
Amazon’s statement in a March 8 email to associates (affiliates):
“The regulations are burdensome and no other state has similar rules…..
“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.”
One thing is certain. This issue is not going away.
Related posts:
