Tuesday, March 16, 2010

Amazon's position on a Colorado sales tax law

When I created this Blog, I immediately decided to
monetize it. I enrolled it in AdSense, then I
tried to become an Amazon.com Associate. I found
out Amazon doesn't accept enrollees from the State
of Colorado. When I inquired as to why, I received
this email which I quote in its entirety:


Hello,

I apologize for any inconvenience. Because you are
located in Colorado, we are unable to accept your
application to join the Associates Program. The
Colorado government recently enacted a law to impose
sales tax regulations on online retailers. The regu-
lations are burdensome and no other state has similar
rules. The new regulations do not require online re-
tailers to collect sales tax. Instead, they are clear-
ly intended to increase the compliance burden to a
point where online retailers will be induced to "volun-
tarily" 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. Re-
grettably, as a result of the new law, we 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 constitu-
tional, 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.

I have yet to read the contents of HB 10-1193. Remember,
I dislike research.However, when it could potentially
affect my pocketbook, it does make me rather curious.
My next post will be about this bill and what is says
that ticked off Amazon and probably a few former
Colorado Amazon Associates.

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