Colorado Tries to Tax Online Sales

[wyzardd]

I was just informed by Amazon that they've canceled the Amazon Associates program for us in Colorado because of this. I made nearly a dollar off of it in the past 5 years, but I'm sure someone somewhere will effected.

Regrettably, as a result of the new law, we have decided to stop advertising through Associates based in Colorado. We plan to continue to sell to Colorado residents, however, and will advertise through other channels, including through Associates based in other states.

There is a right way for Colorado to pursue its revenue goals, but this new law is a wrong way. 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.

Your Associates account has been closed as of March 8, 2010, and we will no longer pay advertising fees for customers you refer to Amazon.com after that date. Please be assured that all qualifying advertising fees earned prior to March 8, 2010, will be processed and paid in accordance with our regular payment schedule. Based on your account closure date of March 8, any final payments will be paid by May 31, 2010.

[Bailey Guns]

Unenforceable. Here's an idea: Cut spending, instead of trying to generate more revenue to continue funding entitlement programs. Ritter has cut higher ed funding, while signing a bill that allows illegal aliens to take advantage of in state tuition rates. Seriously, WTF?

Thank you. WTF ever happened to people taking responsibility for their lives. I don't mind helping the small portion of the population that truly needs help.

[Bailey Guns]

I was just informed by Amazon that they've canceled the Amazon Associates program for us in Colorado because of this. I made nearly a dollar off of it in the past 5 years, but I'm sure someone somewhere will effected.

I'm pretty sure this was retaliation against the new law. It's unfortunate that Amazon is using their affiliates as a way to get a poke in on the Colorado legislature. But, maybe the affiliates that are affected will start making some calls and get involved.

Remember in November.

[iamhunter]

I'm pretty sure this was retaliation against the new law. It's unfortunate that Amazon is using their affiliates as a way to get a poke in on the Colorado legislature. But, maybe the affiliates that are affected will start making some calls and get involved.

Remember in November.

also, states like NY, NC, and RI tried using the affiliate program as basis to argue that Amazon had a physical nexus in those states, which opens the door for enforcement.

[Richard K]

I wonder how this will affect out of state gun purchases. Will your FFL have to charge tax?
If so, I can envision that small, home based FFL's will stop handling transfers.

[sabot_round]

Well, that blows donkey!!

[Ridge]

Wouldnt this be in violation of Interstate Commerce?

Forcing a company in say, Texas, to collect sales tax on purchases going to Colorado, then send those taxes to Colorado?

Seems like a lot more work without any benefit to them. Which means they will be forced to stop making sales to Colorado...

[68Charger]

Wouldnt this be in violation of Interstate Commerce?

Forcing a company in say, Texas, to collect sales tax on purchases going to Colorado, then send those taxes to Colorado?

Seems like a lot more work without any benefit to them. Which means they will be forced to stop making sales to Colorado...

it clearly is to me, but Kalifornia has been getting away with it... somebody needs to challenge it in court (maybe it has/is being challenged, I don't follow it).. but when I bought something from TDS, they charged sales tax because they're required to pay it currently.

I guess the difference is that the sale orginated in California, and so they pressure/force the business with a sales tax license to pay taxes on sales, even if they go out of state

[Ridge]

I had wondered why starting a year or 2 ago, that iTunes had started charging sales tax on my music purchases...

[funkfool]

The Colorado law requires online retailers to inform state residents that their web purchases are subject to state sales tax both at the time of checkout and in an end-of-year summary, said Mark Couch, a spokesman for the Colorado Department of Revenue. The state Department of Revenue may ask online retailers that do more than $100,000 in annual sales to provide data on what individual Colorado residents spend each year (without breaking out specific purchases). Here's the full text of the bill.

I never buy anything online.... *wink*