Amazon, Colorado and Affiliates
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Amazon, Colorado and Affiliates
I would not normally post anything on this blog that is related to politics, but the Colorado state government has screwed a number of it’s constituents.
Let this be a warning to you in other states who are wanting to generate additional income online. This may be coming to a state you live in!
I live in Colorado, and today I received an email from Amazon, letting me know that thanks to the misguided legislation (HB 10-1193) passed by our state legislature, I could no longer be an Amazon affiliate.
Our state government, in all of its wisdom, decided it needed to try to collect more tax revenue by charging sales taxes on internet based transactions.
This is a bad law, and puts too much of a burden on affiliate networks, and Amazon was the first to reject the requirement, and will no longer allow affiliates doing business in Colorado.
I don’t receive much income from Amazon, so it will not affect me as much as it will affect others. Image waking up one day to find out all the sites you have been working on, building affiliate income on, are now worthless to you. Those affiliates who prepared for this may be okay – for now. If they saw this coming and moved to another affiliate network, good for them.
But, I am concerned that other affiliate networks will follow Amazons lead and thousands of Coloradoans will lose income.
It continues to amaze me how our local and federal governments continue to screw its citizens, in a time of great financial hardship.
Government continues to grow and consume at an alarming rate, while those of us contributing to the tax base are punished more and more. Has all common sense been lost in this country? Don’t they understand that being unfriendly to small businesses, taking more income from small business results in less tax revenue to draw from?
There will be those who blame Amazon for this, but Amazon fought this bill and gave fair warning that they would not participate in what they see as an unconstitutional law.
As Amazon stated in the email to Colorado affiliates:
“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.”
If you are a resident of Colorado, I encourage you to contact Governor Ritter here and your state legislators
If you are not a resident of Colorado, pay attention to bills being passed by your state legislatures.
Well, I’m off to look at all my websites to see where I need to change my affiliate programs from Amazon to some other affiliate network.
You know, I’m not that far from Wyoming, perhaps I am ready for a move to southern Wyoming. No state income tax, and they still value freedom and small business.
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I got my email from Amazon today too… I’ve also received emails from other affiliate programs… so far, seven programs have dropped me because I live in Colorado… I don’t think our state legislature thought about the consequences of this law… They’re trading sales tax revenue (that they won’t get) for the income tax that affiliate marketers within the state bring to their coffers…
Why should a law like that be passed? Really Coloradoans will lose so much of their income.
Where does the fault lie? Amazon or state of Colorado?
I think it is fair that Tax is paid on transactions otherwise Amazon have unfair advantage over other Colorado businesses. Shouldn’t Amazon collect the tax? Yes, but they do not like the admin overhead.
Evading tax on online goods is one of the best reasons to buy online. Too bad the government is not a fan of this.
This seems to be just some of the odd things in Colorado. In fact there are a lot of things not right with the world today, and not just with the world of business and finance, and the more people wake up to this fact, the better it is for the world. It’s like the squeeze is also being put around internet marketers, around the little guy, etc….
it is seems to be a bad decision for online workers that collecting more tax revenue by charging sales taxes on internet based transactions.
You tell ‘em Mike! I don’t think the government should have a right step in and take people’s income away, they’re in our lives enough as it is. Also I forget if this is a state or federal law that was just passed about online purchases being subject to state taxing, which is one of the main benefits of ordering online. Get out of our lives government!
It’s amazing to see how the government makes loss our profits and incomes of the affiliates and the truth is that this is a terrible situation for those who lives in Colorado and are promoting Amazon products as an affiliates.
I hope that other Affiliates websites don’t do the same thing as Amazon, because then we will have less profits, and also I don’t know why the government are charging taxes if they has already a lot of money… And they want even more? That is really sickness
But, let’s see the positive side, we always will find new ways to make money by Internet and generate more profits, so let’s move one
In fact there are a lot of things not right with the world today, and not just with the world of business and finance, and the more people wake up to this fact, the better it is for the world. It’s like the squeeze is also being put around internet marketers, around the little guy, etc….
Wow! That is really bad new for making money online person on Colorado. Hope they will change the regulation in the future.
Something tells me we are going to see this happening in more and more states as the years go on.
Although it would be nice to have everyone play by the same rules, I’m not sure how a half hearted attempt to punish Amazon leads to this type of decision.
Unfortunately the government seems to think the online environment is simply an easy place to make money even when it is not due to them, be it from taxes on certain goods, or into their campaign coffers from alcohol related deals which I see and hear about every day.
I think this is not a good law at all.The decision taken by the government is bad.I really not satisfied with this decision.
Wow, I had heard some states were considering this legislation. But this is the first state that I’ve heard that’s actually passed it.
Sorry to hear that it affects you personally–pretty annoying. Hopefully other states won’t follow suit!
This is a bit disheartening to hear, i truly hope this policy doesn’t get adopted by all the states. The main reason that i buy online is so i don’t have to pay tax.
I believe that government has a great part in online earning. If government supports these kinds of work, it will prove so better.
I am moving to Arizona do they have such stupid laws there? I hope not
Is this the beginning of the end for tax-free purchases on the net, or is it the end for tax-happy Democrats like idiot Ritter (Gov-D)?
I didn’t realize that they passed this in Colorado too! I saw that this was passed in Hawaii and another couple states. How long before all the states do this and what would that mean for Amazon????
How can this become a law in a country.It’s really disgusting.
That’s why sometime I really hate politics.
I have been reading about this more and more. What did they think would happen??? Amazon has already followed this same procedure in other states.
It is not best for people who earn small income from Amazon that are living in Colorado, I think your state government and legislators should have a re-think about this bill and make amendment not to affect people who only make small income online.
I was affected as well and got kicked out of 2 affiliate programs so far. One thing I will do is look at incorporating out of state and see how that would work. I really sucked, and I wrote many congress persons about it. I wonder how much they really think they are going to get now?
This is not good news… I’m in favor of multiple streams of income, but if they all come from the Internet – these sorts of regulations can really hurt.
Incorporating out of state may do the job, at least until that other state does the same thing…
I must admit to being against all these increasing taxes, and already voting Republican… but Tea Party – Give me a call!
Amazon stops paying Colorado affiliates, but still takes their business and keeps their commissions.
I am not sucessful to do affiliate with Amazon although I tried to marketing their products.What ‘s your secret?
Amazon has already followed this same procedure in other states.
The Government will find a way to tax everything. I don’t blame Amazon.
This is the reason why i don’t like politics but politics play a very important role in our lives which we can’t avoid.
This law is totally bad,i affects the life of all the citizens of Colorado.
Tax on online income is a bad law for the people who make extra efforts to make money and spend there time on the online earning instead of spending that time to enjoy …..
I believe that all people are involved when it comes to politics. Because the state of economy is highly affected and every decision made by the people I the government will have an advantages and disadvantages.
This is grossly unfair to Amazon’s Colorado affiliate this is a tax-happy state government thing, but in truth online retailers like Amazon should not have a structural 5-10% price advantage if they are selling things to people in a state with sales tax. It hurts local retailers everywhere. The playing field should be leveled.
Terrible backward anti-entrepreneurial law.
I think your state government and legislators should have a re-think about this bill and make amendment not to affect people who only make small income online.Thanks 4 sharing cool review.
it is for the world. It’s like the squeeze is also being put around internet marketers, around the little guy, etc..
No one should take taxes from people who try to make extra inclome online !
The goverement dont want to let the people to be able to live good life. Someone try hard and do extra job at night on the internet in order to provide his family and they want to take a bite on that as well. Disgusting !
People should do like in England. Hundred on thousand of people went out to the street. Margaret Tacher lost the chair due to her try to increase taxes.
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Someone try hard and do extra job at night on the internet in order to provide his family and they want to take a bite on that as well. Disgusting !
This is grossly unfair to Amazon’s Colorado affiliate this is a tax-happy state government thing, but in truth online retailers like Amazon should not have a structural 5-10% price advantage if they are selling things to people in a state with sales tax. It hurts local retailers everywhere.
There are a lot of things not right and this is an example. Colorado state government should re-think about their legislation. They should support their citizen instead of finding any way to tax
This seems to be just some of the odd things in Colorado. In fact there are a lot of things not right with the world today, and not just with the world of business and finance, and the more people wake up to this fact…
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I like your post because it is like a political issue i have so much interest in politics.
Law and politics isn’t my thing. I say we focus more on world hunger instead of this useless bickering
The Government will find a way to tax everything. If government supports these kinds of work, it will prove so better.
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Tax on internet?…I don’t think it’s a good idea.
Tax on Internet !!!!!!!…..I think it is a good idea. Because it will save more time. We will not face more difficulties.
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In fact there are a lot of things not right with the world today, and not just with the world of business and finance, and the more people wake up to this fact…..
Excellent tips. Really useful stuff. Never had an idea about this, will look for more of such informative posts from your side. Keep it up.
Each and every point is good enough.Thanks for sharing with us your wisdom.
I think it is a good idea. Because it will save more time. We will not face more difficulties.
The Government will find a way to tax everything.
I think it will be better if the legislators should have a re-think about this bill and make amendment not to affect people who earn small income online.
so great …
It seems as if everything that we do revolves around taxes.
Am I the only one that is tired of thinking about taxes?
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Man if this happened to me I’d be mad as can be. I make my own income from home, and every 3 months when I have to pay that several thousands of dollars in tax it already ticks me off. If they’d be taking even MORE money from me, especially just because I do by business online, I’d REALLY be mad. I really hope this law is eliminated and does not make it to me here in PA.
Tax on Internet !!!!!!!…..I think it is a good idea. Because it will save more time. We will not face more difficulties. it will be better if the legislators should have a re-think about this bill and make amendment not to affect people who earn small income online.Thanks
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a terrible situation for those who lives in Colorado and are promoting Amazon products as an affiliates.
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I forget if this is a state or federal law that was just passed about online purchases being subject to state taxing, which is one of the main benefits of ordering online. Get out of our lives government!
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In fact there are a lot of things not right with the world today, and not just with the world of business and finance, and the more people wake up to this fact, the better it is for the world.
I don’t know why the government are charging taxes if they has already a lot of money… And they want even more? That is really sickness
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The government only considers things illegal when it can’t collect tax revenues from it: online gambling, online transactions, drugs, etc.
They seem to allow the sale of tobacco and alcohol just fine even though it destroys a lot of people’s lives.
amazon is a great network, and may there are many other people they wants to get benifits of its name,, no worries about..
I don’t think our state legislature thought about the consequences of this law… They’re trading sales tax revenue (that they won’t get) for the income tax that affiliate marketers within the state bring to their coffers…
They’re trading sales tax revenue (that they won’t get) for the income tax that affiliate marketers within the state bring to their coffers…
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In fact there are a lot of things not right with the world today, and not just with the world of business and finance, and the more people wake up to this fact, the better it is for the world. It’s like the squeeze is also being put around internet marketers, around the little guy, etc….
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Nice information. This gives some nice practical tips that anyone can use, i will definitely share with my friends. It continues to amaze me how our local and federal governments continue to screw its citizens, in a time of great financial hardship. There will be those who blame Amazon for this, but Amazon fought this bill and gave fair warning that they would not participate in what they see as an unconstitutional law.
I hope that other Affiliates websites don’t do the same thing as Amazon, because then we will have less profits, and also I don’t know why the government are charging taxes if they has already a lot of money… And they want even more? That is really sickness
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More and more of our income comes from sales generated by the internet. Although we are based in dublin, ireland a lot of our customers are from the united states. We were seriously looking at ways of generating extra revenue from our site though affiliate promotions and partnerships but if this kind of legislation is rolled out increasingly not just across the US but across the world then it’s hard to see how one can reasonably base a solid business model on such a capricious business which can be taken from you at any moment. Add in google slaps and ever changing google algorithms and the internet seems less an attractive place to do business than at first sight.
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I’ve also received emails from other affiliate programs… so far, seven programs have dropped me because I live in Colorado… I don’t think our state legislature thought about the consequences of this law… They’re trading sales tax revenue (that they won’t get) for the income tax that affiliate marketers within the state bring to their coffers…
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In fact there are a lot of things not right with the world today, and not just with the world of business and finance, and the more people wake up to this fact, the better it is for the world. It’s like the squeeze is also being put around internet marketers, around the little guy, etc….
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I don’t know why the government are charging taxes if they has already a lot of money… And they want even more? That is really sickness,Thanks for sharing this topic with us….
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This bill will hurt small online sellers from Colorado. The buyers will buy from online sellers in states other than Colorado. How does this bill level the playing field? By having sales go to other states online retailers?
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They’re trading sales tax revenue (that they won’t get) for the income tax that affiliate marketers within the state bring to their coffers…
Someone commented in an earlier discussion on thes very same topic, that they didn’t like this discussion. Why would someome say such a thing?
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They’re in charge of the U.S. Senate so if they want to they can really get in there with the senators and make a lot of good policy changes that will make life better for Brandon and his family and his classroom.” –Sarah Palin, getting the vice president’s constitutional role wrong after being asked by a third grader what the vice president does, interview with NBC affiliate KUSA in Colorado, Oct. 21, 2008
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This is a huge topic that cannot be completely covered here. I am a commercial Realtor in Texas, and I deal with development and raw land deals on a regular basis. CAP rate scenarios only truly apply to existing, income-producing properties. All you can do with raw land is create a prospectus. A prospectus is basically a business plan with a bunch of variables, one of which can be a CAP rate on the investment. This is directly tied to the NOI (annual Net Operating Income), which insinuates that the development is already built.
As amazon associates, it is very scary to hear news like this because we start to ask ourselves if what were building will come crashing down one day if our government decides to do the same. Since we already know what amazon’s take on it is.
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This is a huge topic that cannot be completely covered here. I am a commercial Realtor in Texas, and I deal with development and raw land deals on a regular basis. CAP rate scenarios only truly apply to existing, income-producing properties.
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Because of the new state regulation on sales tax collection, Amazon has pulled the plug on its affiliate program in Colorado. Thus far, seven of the programs have dropped me for the reason that I’m residing in Colorado.
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