Amazon Fires Its Affiliates in Colorado (Including Me) Because of Colorado HB 10-1193

Technology Review (MIT) ^ | Monday, March 08, 2010 | Brad Feld

[snarkpup]

I’ve been an Amazon Associate (Amazon’s affiliate program) for many years. Today I got the following notice in my Amazon Associates account.

and I woke up to the following email.

[snarkpup]

The author says he's been a supporter of Governor Ritter. Elections have consequences.

The article includes a copy of the announcement Amazon sent to its CO affiliates announcing the decision as well as Ritter's response.

[thulldud]

I note that certain legislators said that they would "fix" it later, after it passed.

I know I've heard something similar to that recently....

[pnh102]

The author says he's been a supporter of Governor Ritter. Elections have consequences.

LOL. What a sucker.

[Blood of Tyrants]

Politicians are such idiots. They assume that whatever tax laws they pass will have absolutely no negative consequences and then they are surprised when people and businesses react in a way to keep from paying those taxes.

[RobRoy]

I have no clue what an affiliate is.

[catnipman]

Colorado Gov. Bill Ritter, a Democrat who signed the bill into law last week: "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."

Typical stupid comment by Dimocrat Ritter. Namely, if a company doesn't like a state's law and consequently refuses to do business in the state because of that law, then that's "trying to avoid compliance".

Sounds to me like that's trying avoid a business-unfriendly state, which the Dim majority legislature is hell-bent on creating. Most likely the Dims will lose their majorities at every level in Colorado when the tidal wave of outraged voters inundate the voting booths in November to oust the Obamunists and their minions.

[Vigilanteman]

My former soon to be ex-senator Byron Dorgan was considered a hero by some local Mom and Pop retailers when he figured out a way to tax Quill Corporation who shipped to mail order customers in North Dakota.

Most of those same retailers are out of business now and Quill is doing just fine.

[colorado tanker]

Colorado is still a Republican state by voter registration. The reason we have a Democrat legislature and Governor (aside from stupid Republicans dividing the party at times) is because we have been deluged with 527 money from fat cat Democrat donors, most of them having made their money in Internet and high tech companies. This author may well have been one of them.

Quite honestly, I'm relishing a schadenfreude moment right now.

[driftdiver]

An affiliate is someone who sells their stuff through amazon.

[freespirited]

It’s not clear from the article what the law does. But when a company voluntarily withdraws from a market where it has no shortage of customers, I gotta figure this is one stupid law.

It’s got plenty of company.

[eyeamok]

This is exactly what this country needs, More CEO’s standing up to Government Tyranny and just not playing their Game, Jeff Bezos taking a play from Howard Hughes, I love it.

[Alberta's Child]

That's right. That supporter of Governor Ritter can go stew in his own feces right now.

I’ve been a supporter of Governor Ritter since his campaign for governor and have worked hard to positively impact Colorado’s software / Internet / technology / entrepreneurial ecosystem.

[keepitreal]

The law basically states that if a company like Amazon, which has no storefront in CO, has any companies or individuals affliliated with it (private sellers who use Amazon to sell used books, basically) who are actually located in CO, Amazon must collect sales taxes for any sale IT ships to CO. Amazon isn’t paying taxes, just collecting and remitting, which costs a lot in hiring folks for compliance.

[snarkpup]

It’s not clear from the article what the law does.

From Gov. Ritter signs tax bills into law (Denver Daily News):

House Bill 1193 will force out-of-state online businesses that do more than $100,000 in Colorado to either collect the state sales tax or send a letter to customers detailing their purchases and how much sales tax they owe the state.

The text of the bill is available here:

HOUSE BILL 10-1193

[RobRoy]

Thanks. I was trying to see it the other way around and it wasn’t working.

[RobRoy]

So if a guy in Colorado sells widgets through Amazon, EVERYTHING Amazon delivers to Colorado customers must be charged a sales tax?

Man, does this sound like a John Gald vs the Looters sort of thing.

And even if it only applied to this guys widgets, why couldn’t they end their relationship with him and use the widget seller from Washington state as their “widget affiliate”.

[snarkpup]

And even if it only applied to this guys widgets, why couldn’t they end their relationship with him and use the widget seller from Washington state as their “widget affiliate”.

This is what Amazon just did.

[RobRoy]

Do these politicians think this stuff through? Are they really that thick regarding the law of unintended consequences and the desire of private business to avoid costs and taxes. It is why the tax exemption exists, for crying out loud.

Like I always say, it is easier to get elected than to get hired. To get hired, you usually have to have more qualifications than simply being personable at the interview.

[r9etb]

I have no clue what an affiliate is.

You can buy stuff through Amazon that is actually being sold by somebody else -- as a middle-man, Amazon lists these affiliates in response to searches, and provides a link to the seller. You'll almost always be buying used books through affiliates.

In those cases, when you "buy from Amazon," you're actually buying from the affiliate. Amazon presumably collects a commission, and the seller gets business.

[RobRoy]

I love it when business end-runs the looters.