Even will all the hard work by online marketers and bloggers here in Colorado, Amazon sent notice this morning that they are closing the accounts of their Colorado affiliates.
According to the Performance Marketing Association blog, “HB 1193 was passed without ad tax language. However, the remaining language may impact out-of-state retailers, who should consult legal and tax experts.” So, it’s no surprise that Amazon gave notice – exactly what we told representatives would happen if HB-1193 passed.
Even though I make less than a dollar a day with Amazon, I’m still saddened by the news. I’ve been working with the Amazon Associates Program for almost six years and it’s been one of the few affiliate programs that have worked for me. Still, with the minor amount I earned, I have to wonder if copying and pasting affiliate code and including disclosure language was worth my time. Probably not.
Amazon cancels Colorado affiliate program
Here’s the email they sent out.
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
For more on this, check out Amazon Fires Its Colorado Associates from radar.oreilly.com.
