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 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.