Amazon ends Colorado Affiliate Program!

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Amazon.com has notified Colorado-based members of its Amazon Associates program that it will no longer offer the program in the state due to new legislation that will impose a sales tax on online retailers.

According to a report in Publishers Weekly, Amazon said in a letter to its associates that while the law doesn't require online retailers to collect sales tax, the new ruling places an increased compliance burden on online retailers, which in effect induces them to "voluntarily" collect Colorado sales tax, a course the company says it will not take.

Amazon has stopped advertising through its Colorado associates, though it said it will continue to sell to Colorado residents and will advertise through other channels, including through associates based in other states, PW said.

The company also said that if Colorado were to scrap the new law or follows the "constitutional approach to collection," Amazon would re-instate Colorado-based associates.

A number of states are trying to impose sales taxes on out-of-state e-tailers on the grounds that their associate or affiliate programs constitute a legal nexus for those e-tailers to collect sales tax.

Amazon is appealing New York State's law that requires the collection of sales tax by out-of-state e-tailers. It is collecting the tax in New York while its appeal moves forward. Last year it ended its affiliates program in North Carolina to avoid collecting a sales tax there.

Amazon's associate and affiliate programs allows users to earn money from offering the e-tailer's numerous products on consumers' blogs and web sites.

[rekhasein]

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.

[kavin]

There is no federal sales or use tax in the United States. All but five states impose 'sales and use taxes on the retail sale, lease and rental of many goods, as well as some services. Many cities, counties, transit authorities and special purpose districts impose additional local sales or use taxes. Sales and use tax is calculated by multiplying the purchase price by the applicable tax rate. Tax rates vary widely by jurisdiction and range from less than 1% to over 10%. Sales tax is collected by the seller at the time of sale. Use tax is self assessed by a buyer who has not paid sales tax on a taxable purchase.
Keller Williams Partners Realty - Colorado Springs