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Amazon cuts off Colorado affiliates because of tax
Amazon cuts off Colo. affiliates because of tax
By COLLEEN SLEVIN (AP) – 12 hours ago
DENVER — Amazon.com 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, ShopAtHome.com, 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