Net Sales Tax Prompts Amazon to Cut Off Colorado, More States Could Follow
Right now, there are a bunch of angry former Amazon Affiliate program members in Colorado. A new law signed by the state's governor Bill Ritter would require Amazon to pay sales taxes if its affiliates, meaning Web sites and bloggers who refer purchasers to them, are based in the state. In response, Amazon discontinued its program, leaving thousands of affiliates -- many of whom rely on the referral fees for income -- with little recourse but to complain to their elected officials.
This is not the first time that Amazon has been compelled by states to collect sales taxes. In 2008, New York began requiring the online retailer to pay taxes, but, likely due to the market's size, Amazon kept the affiliate program in place. North Carolina and Rhode Island passed similar laws which caused Amazon to pull the plug on affiliates there.
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Net Sales Tax Prompts Amazon to Cut Off Colorado, More States Could Follow originally appeared on Switched on Tue, 09 Mar 2010 15:15:00 EST. Please see our terms for use of feeds.