Colorado business people are up in arms about Amazon ditching their Colorado affiliates. I’ve heard from several people who are losing 10-25% of their annual business. Some are considering moving their businesses out of state. This just shows how Colorado is actually losing money by keeping HB-1193 on the law books – lost revenue equals less income tax.
The local media has FINALLY decided that this in an important story. I heard the Amazon story reported on a local NPR news show and the Denver Post ran a story in today’s paper - Amazon.com drops Colorado retailers after tax law enacted. As I write this there is over 100 comments. People are obviously upset at both Amazon and our state government.
What can I do about the Colorado Ad Tax?
First, contact your local representative letting him or her know of the current impact of HB-1193, Their contact information can be found through the directories on the Colorado General Assembly website.
Second, we need to prevent other affiliate programs from following in Amazon’s steps. The Colorado Online Marketing Association (COMA) is asking that Colorado Affiliates please send letters to your merchants to prevent other withdrawals of affiliate programs:
Dear [affiliate manager’s name],
As a Colorado-based affiliate and valued affiliate in your program, I am reaching out to you to give you more information about the advertising tax in Colorado (HB1193).
Amazon sent a termination letter to Colorado affiliates today. I want to make sure your company understands this move by Amazon did not have to do with any affiliate nexus clause in the law. Affiliates do not establish nexus for out-of-state merchants.
The termination of Colorado affiliates by Amazon is apparently a move to protest against the final language of the bill, which puts a tremendous burden on merchants. As a merchant you should definitely consult legal and tax experts about this issue.
Upon hearing about Amazon’s termination of Colorado affiliates,
Colorado Senator Brophy, a big supporter of the affiliate cause in
Colorado, tweeted that he will be reaching out to Amazon about this issue. @SenatorBrophy: I have call into Amazon about affiliates – will seek emergency legislation if necessary to fix.To reiterate, the new law does not include anything about affiliate nexus. I ask that you carefully consider all the facts regarding Colorado HB1193, so we can continue our valuable and productive relationship.
If you have any questions, please feel free contact me.
Respectfully,
[Your name]
[Email address]
[Phone optional]
Third, you may also want to join their PMA CO Google Group to get the latest news.
Finally, let COMA know if you have received notice from any other merchants terminating your affiliate partnership due to HB-1193. You can contact them via Facebook or Twitter or by leaving a comment on their website.
So far the list includes:
- Amazon
- Oriental Trading Co.
- Terry’s Village
Colorado ad tax and your local state representatives
If you’re a Colorado voter, you need to be taking notes on who is trying to overturn HB-1193, like Colorado Senator Greg Brophy (R) of District 1, who has been tweeting @SenatorBrophy that he’s trying to fix things. Some quotes:
- I have call into Amazon about affiliates – will seek emergency legislation if necessary to fix #noadtax.
- Dems "stay the course action" taking on Amazon is costing thousands in CO their livelihood. Y, there r other ways #noadtax
- Press Conf 2day at State Cap w/ @McInnisColorado we will commit 2 solving ths Amazon tax asap when new GOP takes ovr. #noadtax
- contact Miles Moffeit at Den Post for how Amazon tax hits you MMoffeit@Denverpost.com #noadtax
(You can find other people’s tweets on this subject at #noadtax.)
And you should be aware of who supports the bill, like Governor Ritter and Representative Jack Pommer, (D-Boulder County) author of the original bill, who represents parts of Boulder and Longmont. Find out who is running for reelection, what their position is on HB-1193 and the Amazon matter. Then tell them why you will or won’t be voting next November.
According to the Denver Post article, Candidates for governor are short on answers, Scott McInnis (who is running against Denver Mayor John Hickenlooper) is for repealing HB-1193 saying that it’s bad for business and will cost some Coloradans their livelihoods. Mayor Hickenlooper declined to comment at this time.
Senator Rollie Heath, cosponsor of HB-1193 has issued a statement that Amazon is selfish and holding its affiliates hostage. Senator Heath represents District 18, the City of Boulder, including Gunbarrel, the towns of Niwot and Hygiene and several portions of unincorporated Boulder County.
More on Colorado HB-1193 and Amazon
- Amazon Removes Colorado Affiliates and Why and What Will Guide You – Affiliate Advocacy
- Braindead Affiliate Tax Lands, Amazon Cuts Me Off – Intuitive System
- Colorado – bad turn by Amazon – Performance Marketing Alliance
- Amazon drops Colorado Affiliates – COMA
- Amazon fires Colorado affiliates in protest - The Spot
- Hickenlooper missed his chance on Amazon tax - The Spot
