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Amazon cuts off Colorado affiliates because of tax

submitted on March 9, 2010 by orangearrows in "Stores / Merchants"
Amazon cuts off Colo. affiliates because of tax

By COLLEEN SLEVIN (AP) – 12 hours ago

DENVER — Inc. cut ties Monday with Colorado online businesses that help it sell products because of a new state law aimed at getting out-of-state, online retailers to collect sales tax.

The move hurts businesses — many of them small, home-based operations — that earn money by using their Web sites and blogs to link customers to online retailers. Colorado has at least 4,200 such businesses, known as affiliates or associates, accounting for about 5,000 jobs, and most of them rely on Amazon to some degree, according to their trade group, the Performance Marketing Association.

The group's executive director, Rebecca Madigan, said some get only about 10 percent of their revenue from Amazon but others are totally reliant on it.

Colorado's largest affiliate,, works with 5,000 online merchants and will be able to recover from the lost business, president Marc Braunstein said. But many "mom and pop" affiliates will suffer

  • 55241
    Posted by honesta on March 9, 2010
    [reply] 5 0
    If they implement this, it would hurt a lot of internet companies.
  • 55247
    Posted by bert on March 9, 2010
    [reply] 3 0
    Yes, but if they can get everyone on board maybe they can get the tax repealed!
  • 100701
    Posted by YanBz on January 29, 2011
    [reply] 1 0
    Now Amazon cuts IL affiliates as well since IL is passing a similar law
  • 100809
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    7 1 1
    Posted by orangearrows on January 30, 2011 [reply] 0 0
    This is a bummer. Greedy b*******.

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