Amazon and Colorado

[doc24]

Just got word from amazon !!!!

What is a good replacement for them for all types of products ????
What a hose job
______________________________________________________

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

 

[draggar]

We're going to see more and more of these. One big online company that I was an affiliate for completely pulled their affiliate program because states are starting to enact their own policies / taxes on it and they think it is too much to attempt to comply with each state.

The sad thing is that it's people like us who get hurt in the end from things like this.

 

[doc24]

Not only that. Colorado is not making in mandatory so what the hell is the point ??


What is a good replacement for them for all types of products ????

 

[JohnNapoletano]

Anyone know what other states are closed to Amazon? Trying to figure out if Connecticut is going to be a problem, with Amazon or any other affiliate programs.

 

[doc24]

John
Its only a matter of time other states will adopt this. amazons power play results in overall loss of income for the state. I am looking for better affiliates that pay the tax, which there are many, but looking for a combo merchant also.

 

[maregee]

Anyone know what other states are closed to Amazon? Trying to figure out if Connecticut is going to be a problem, with Amazon or any other affiliate programs.

Rundown on the affiliate tax situation in CT on several of the affiliate forums and sites - here's one good source: http://www.abestweb.com/forums/forumdisplay.php?f=545

 

[Gerry]

Anyone know what other states are closed to Amazon? Trying to figure out if Connecticut is going to be a problem, with Amazon or any other affiliate programs.

Yes, North Carolina may have been the first and others have followed.

I just posted this a couple of days ago.

http://www.dnforum.com/f254/amazon-fight-having-withold-tax-affiliate-members-thread-412289.html

http://www.msnbc.msn.com/id/35863029/ns/business-retail/

Whitebark posted this map which is really helpful in seeing how this is spreading.

http://www.cj.com/news/internet_tax.html

Several states have voted on and vetoed this. But, some are reconsidering it.

Amazon is going to take a stand and fight this in Colorado.

 

[maregee]

Yes, North Carolina may have been the first and others have followed.

Actually, New York was first. Followed by NC, RI ...

CT held a hearing on it just this week - very possible it will pass this time around. Lots of states are revisiting it - if your state has sales tax and a budget deficit you're probably not "safe".

The thing is, as Rhode Island has discovered, this is NOT providing additional revenue for the states. The companies drop the affiliates, so they're not collecting sales tax from those sources any more. Additionally affiliate-related businesses (not just affiliates, but program managers, etc too) fold, have layoffs or experience a drop in income so the states get less income tax besides.

Some good videos on YouTube - do a search on "affiliate tax" or "advertising tax"

 

[whitebark]

I think many Canadian publishers are in the same situation as I - getting inundated with sign-up requests and information requests for how much US traffic our websites get.

 

[Gerry]

The thing is, as Rhode Island has discovered, this is NOT providing additional revenue for the states. The companies drop the affiliates, so they're not collecting sales tax from those sources any more. Additionally affiliate-related businesses (not just affiliates, but program managers, etc too) fold, have layoffs or experience a drop in income so the states get less income tax besides.

That is precisely why the State of Virginia voted DOWN the measure and used those very examples of why it was not passed - rather than abide by their state tax laws, Amazon simply dumps the entire state affiliates.

I was also cut loose by SierraTradingPost. The biggest downside to that affiliate is they are part of the CJ or Linkshare program now.

 

[maregee]

I was also cut loose by SierraTradingPost. The biggest downside to that affiliate is they are part of the CJ or Linkshare program now.

Lots of companies are dropping affiliates in states where these laws are passed. Overstock.com is another big one, Netshops and CSNstores both dropped affiliates in NY, probably other states too. Foster and Smith (big pet supply online and catalog sales) dropped their affiliate program altogether so as not to have to worry about the implications.

It's not looking good for CT