| Well, RRW says (http://www.readwriteweb.com/start/2010/03/new-state-law-bump...): "Online retailer Amazon has ended all Colorado-based affiliate accounts after a new law passed by the state's legislature would have forced them to collect and pay state sales taxes. The law, HB 10-1193, states that any affiliate marketer making more than $10,000 for a retailer is declared a legal agent, and a state presence, of that company. Rather than be forced to pay the state taxes, Amazon has instead side-stepped the law by closing its doors to all affiliates based in Colorado." ...though I think they're sloppy, too, speaking of Amazon being "forced to pay the state taxes" - when they seemingly would have to begin to collect sales taxes from customers, which could mean:
• Figuring out the tax rate (which varies by city, county, etc) for each customer.
• Charge a differential price to customers depending on the state/co/city of residence.
• Either increase the charge to customer's CC or cut Amazon (or it's affiliate's) net on a sale.
• Send on the $ to state gov. Sounds to me like they just don't want hassle and cost of programming, processing etc. Note another effect: When I buy a $2500 laptop from Apple online, I have consider the cost of where I want it shipped. If it goes to my office in town, I pay ~3% more sales tax than if I they ship to my out-in-county home. If Apple can handle all that, so can Amazon, but if this is what the CO law will impose on national online retailers it will mean lots more issues for both customer and seller to weigh and start handling immediately. Maybe it's equitable, but I sure wouldn't like to have to have all my business's billing software rewritten overnight. |
"The Colorado legislature should have foreseen this outcome - it's not the first time Amazon has been forced to shut down affiliate programs. In July of 2009, Amazon closed off their programs in Rhode Island and North Carolina, and has previously sued over a law passed in New York in 2008. The suit, however, was eventually thrown out and Amazon has since been paying taxes for New York affiliates they feel are too valuable to give up."
So I still don't see why Amazon is choosing to fight this battle with Colorado :/