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Amazon Drops Colorado Affiliates

I got an e-mail yesterday from Amazon telling me my affiliate account is being dropped because Colorado passed a law requiring sales tax on internet purchases. Amazon wants Coloradans to work to get the law repealed. In the meantime, it is cancelling all business and affiliate accounts that do business with them.

The affiliates, ranging from online booksellers to individual bloggers who advertise Amazon on their websites to receive a commission in return, were both angry and confused by the move. And some say they were not notified.

Judith Briles, chief executive officer of Mile High Press, a book publisher in Aurora, says:

"Amazon is going to get horrendous publicity for this. But there are two bad guys: Amazon and the lawmakers who moved this legislation through so fast."

It was odd they canceled the accounts immediately. And I liked doing business with Amazon, even though their referral rates are really low. [More...]

As to the law they are talking about:

At issue is a recent law enacted by legislators mandating Amazon and other retailers notify their online shoppers they must pay a 2.9 percent sales tax on purchases. Designed to offset a massive budget shortfall, it is expected to generate $5 million.

Amazon.com, Overstock.com and other online retailers that sell across state borders do not regularly collect sales taxes, though businesses with physical stores in Colorado must. They have fought attempts in other states to enforce collections of taxes on their products.

Though the law does not impose new regulations on require affiliates, or require Amazon to collect the taxes, Amazon says:

Lawmakers "clearly intended to increase the compliance burden to a point where online retailers will be induced to voluntarily collect Colorado sales tax — a course we won't take."

Just another way to pass more costs on to the consumer and small businesses. Colorado should repeal the law. We've never paid sales tax on purchases where the seller is out of state, unless they have a branch store here, and while we need to cut the budget, this is not a good plan to do it.

So you won't be seeing any Amazon links here anymore, except for my wishlist. They said we could still buy from them, they just won't pay us if anyone buys through us.

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  • Display: Sort:
    With the states (5.00 / 2) (#1)
    by Zorba on Tue Mar 09, 2010 at 05:47:59 AM EST
    in so much trouble financially, I'm afraid that this is just the beginning.

    I'm afraid you're right Z... (5.00 / 1) (#2)
    by kdog on Tue Mar 09, 2010 at 07:53:36 AM EST
    blood sucking leeches:)

    It was nice while the tax-free haven internets lasted...but you know the Taxman.  "Be thankful he don't take it all".

    "Now my advice for those who die,
    declare the pennies on your eyes."

    Parent

    They have an unfair competitive advantage (none / 0) (#33)
    by magster on Tue Mar 09, 2010 at 12:34:51 PM EST
    by avoiding sales taxes.  The states and home grown business lobbyists won't let that continue indefinitely.

    Parent
    And they, (none / 0) (#36)
    by cal1942 on Tue Mar 09, 2010 at 01:23:47 PM EST
    the local businesses, shouldn't let that continue indefinately.

    Parent
    Competitively (none / 0) (#38)
    by Socraticsilence on Tue Mar 09, 2010 at 01:40:41 PM EST
    the pricing disadvantage of shipping counters sales taxes on a lot of items.

    Parent
    Amazon... (5.00 / 4) (#4)
    by MileHi Hawkeye on Tue Mar 09, 2010 at 08:12:57 AM EST
    ...can blow it out there, well, you know what.  I'll continue to purchase from local, brick and mortar stores.  The ones that pay their taxes and provide real employment to my fellow Coloradans.  

    I prefer... (5.00 / 1) (#7)
    by kdog on Tue Mar 09, 2010 at 08:50:34 AM EST
    the bookstore too...but for rare hard to find sh*t I've bought from Amazon in the past.

    And it's not like Amazon has a b&m store in Colorado using the infrastructure...I don't see why internet sales should be subject to sales taxes.  Colorado gets their end from taxes paid by UPS shipping the stuff and all the taxes residents already pay...this smells of greed to me.  

    And as always, has the state justified the need for new taxes?

    Parent

    Ah... (none / 0) (#9)
    by MileHi Hawkeye on Tue Mar 09, 2010 at 09:15:47 AM EST
    ...but it is not a new tax.  Internet sales are not "tax-free".  I'm expected to figure out the sales tax that I owe should I purchase something from an on-line retailer like Amazon and then remit it to the State.  

    Amazon is acting like a petulant 3 year old and throwing a tantrum about this because they don't want a level playing field with the local retailers.  

    Parent

    Don't local retailers... (none / 0) (#11)
    by kdog on Tue Mar 09, 2010 at 09:25:29 AM EST
    have the built-in advantage of having a storefront though...ease of returns and book in hand today?  Thats why I prefer them, when I want something to read I want it today, not in 5-7 days. Amazon can never compete with that without a storefront....hence no level-playing field is possible, they are in similar, yet different, businesses.

    As for internet purchases being "tax free", I meant in practice. My state tax form has a line to declare your internet purchases and pay the sales taxes...I just didn't think anyone actually did.  That would be like me requesting a marijuana tax stamp from the man...aka crazy:)

    Parent

    On the other hand... (5.00 / 1) (#12)
    by MileHi Hawkeye on Tue Mar 09, 2010 at 09:45:18 AM EST
    ...if I want to purchase something from a B&M store, I have to make myself presentable for public display, get in the car (with its attendent costs) and drive to the store within its operating hours.  No sitting in the recliner in my PJ's ordering on-line anytime day or night.

    Positives and negatives with both forms of commerce.  

    Amazon is not being asked to collect any taxes, simply notify customers what they owe on their purchases.  Not burdensome at all in today's electronic age.

     

    Parent

    Still... (none / 0) (#17)
    by kdog on Tue Mar 09, 2010 at 10:09:59 AM EST
    why should it be Amazon's job to tell people what they are supposed to declare and pay...they aren't an arm of the government.  Isn't it the individual's responsibility to pay their taxes or dodge 'em at their own risk?

    I don't like how banks are deputized to be an enforcement arm of government...dropping a dime on transactions over 10k and such...now Colorado wants to deputize Amazon?

    Parent

    Arm of the Governent (none / 0) (#19)
    by ScottW714 on Tue Mar 09, 2010 at 10:25:37 AM EST
    As a business you become a defacto arm of the government.  Every retailer that has customers is calculating, charging, collecting, and remitting that tax for the jurisdiction.  If they don't like those terms they aren't allowed to do business in that jurisdiction.  It is not forced on them, they volunteer when they decide to make a buck in that jurisdiction.

    And the kicker is this, if you don't do the job correctly, you are liable for the tax you didn't collect, plus penalty & interest.  Nice racket, but unlike income tax, sales tax directly improves the government closest to you.  What they don't get in tax A, they will get with tax B or C.


    Parent

    (Gears Turning....) (none / 0) (#20)
    by kdog on Tue Mar 09, 2010 at 10:28:49 AM EST
    Come to think of it, its kinda messed up that the state makes b&m retailers collect their taxes for them.

    I keep coming back to scrapping the entire "taxes as we do it" thang and go back to the days of the tax collector coming around once a year for their "x" dollars a head.  I think we do it the way we do it because if we added up every nickel and dime we pay and don't really think about and came up with a grand total we'd sh*t a collective brick.

    Parent

    At least try to be realistic (none / 0) (#37)
    by cal1942 on Tue Mar 09, 2010 at 01:34:18 PM EST
    The tax collectors of old were easily bribed.  Especially by the rich.

    Once again your libertarian ideas end up screwing the average joe and making the rich ever more powerful.

    Retail collection and payment of sales tax is not a huge burden.

    Parent

    Perhaps... (none / 0) (#43)
    by kdog on Tue Mar 09, 2010 at 02:27:12 PM EST
    it isn't that burdensome, but it is a great way to nickel and dime instead of being honest about how much a state needs to maintain infrastructure, collect trash, and (ahem) protect individual liberty...and the bestest fairest way to raise the loot.

    Parent
    We can at least... (5.00 / 1) (#44)
    by MileHi Hawkeye on Tue Mar 09, 2010 at 02:40:30 PM EST
    ...get some idea of where those nickels and dimes are going and how they're being taken out of our pockets the State level.  

    Link

    Parent

    Thats pretty nifty... (none / 0) (#48)
    by kdog on Tue Mar 09, 2010 at 06:35:50 PM EST
    at least the lions share is schools and human services, I will say that.

    We've got 150k a year cops, and I gotta give  Levy some credit for not caving on new hires.  Link

    Parent

    Way too much... (5.00 / 1) (#49)
    by MileHi Hawkeye on Tue Mar 09, 2010 at 07:49:13 PM EST
    ...on penal institutions and not nearly enough on the educational ones.  

    I liked that I could vote on where I think the funds should go.  Doesn't make much difference, but a nice "feel good" kind of thing.  

    Cary Kennedy is very, very sharp and a real valuable asset to have as State Treasurer.  One of the good ones--I hope she's our Governor one day.  

    Parent

    As I hope Kristen Davis... (none / 0) (#56)
    by kdog on Wed Mar 10, 2010 at 07:54:08 AM EST
    is my governor...you've got a better shot than I:)

    Parent
    I love Amazon (none / 0) (#46)
    by BrassTacks on Tue Mar 09, 2010 at 03:29:45 PM EST
    They always have what I want, from books to kitchen gadgets to shoes, gifts, and toys.  For a nominal annual fee, 4 members of my family, with 4 different addresses, get everything shipped for free and it is always there in 2 days.  Always. They are an amazing company.  

    I am not surprised that Amazon reacted the way that they did  I am lucky to live in a state where tax on internet sales is always defeated.  I would be furious if they passed a law like this in my state.  I bet more than a few Coloradans feel the same.  

    Parent

    I respect your support of your local (5.00 / 1) (#14)
    by Militarytracy on Tue Mar 09, 2010 at 09:50:30 AM EST
    economy.  I would be bummed to lose Amazon though because out here in the Bama sticks I buy a lot of used books through them.

    Parent
    Let me suggest, Tracy (5.00 / 1) (#50)
    by Peter G on Tue Mar 09, 2010 at 08:03:24 PM EST
    that you buy your used books directly from the independent booksellers' own cooperative, ABEBooks, rather than from Amazon, which just re-sells from the same little independents after taking a cut out of their already measly profits.  And I always check Better World Books when I'm used-book shopping, to see if they have the title I want, because they don't jerk you around with a separate shipping fee, and they distribute their profits to literacy groups.  

    Parent
    Abe isn't Amazon? (none / 0) (#51)
    by MileHi Hawkeye on Tue Mar 09, 2010 at 08:32:39 PM EST
    AbeBooks Inc. is a subsidiary of Amazon.com, Inc. AbeBooks, an online bookselling pioneer, was acquired in December 2008 and remains a stand-alone operation with headquarters in Victoria, British Columbia, Canada, and a European office in Dusseldorf, Germany..

    Link

    Parent

    Well (none / 0) (#54)
    by squeaky on Tue Mar 09, 2010 at 10:12:11 PM EST
    At least they did not start out that way.

    Parent
    You're really buying from small retailers (none / 0) (#21)
    by Inspector Gadget on Tue Mar 09, 2010 at 10:45:57 AM EST
    and Amazon acts as the broker, taking a share of the sale. Some of those retailers who sell through Amazon probably are located in Colorado. It's almost like eBay these days...makes the tax accounting a challenge, I'd think.

    Note that every book has a variety of different retailers and you can choose who you are actually getting the book from. (It's why it is nearly impossible to get the free shipping for a $25 purchase if it took multiple books from multiple retailers to reach your $25.)

    Amazon is a lousy employer. They operate using a LOT of temporary employees, but they only get to stay on the job for 3 months so they don't get any ideas about possibly being hired.

    I think of them as the online Walmart because of how unfair they are to the people who work for them, and haven't purchased anything through their channels for years.


    Parent

    They used to be a good employer (none / 0) (#24)
    by Militarytracy on Tue Mar 09, 2010 at 11:01:31 AM EST
    I'm up to my armpits in dog paperwork, and dogshow paperwork, and Joshua paperwork, and reimbursement for Joshua paperwork today....why can't someone just be a good employer so that I can live a little and monitor all these scamming greedy arses less.  I could tell they were a hub for private booksellers because they sort of give it away where you are getting the book from, they just offer you a list to choose from of the book in various conditions for the prices that the sellers want for them.  And it costs about $4.00 for shipping and handling.  Barnes and Noble has something to do with being a clearinghouse site for used books too I think.  I'll just have to hit them up more often I guess.  Sometimes they even have free shipping on used books. Why can't people just treat other people decently and fairly though?  With as greedy as we have all been this past ten years it didn't do most of us a damn bit of good.  Our food is practically inedible and the majority of us didn't give a chit.  Wall Street and the Big Banks stole all of our wealth.  If we hadn't all been looking to make huge profits painlessly on something someplace though and been actually desiring to buy into the whole greed is good mindset would we have all been so easily suckered and suckered and suckered?  I wonder!

    Parent
    Please MT (5.00 / 1) (#30)
    by jbindc on Tue Mar 09, 2010 at 11:58:30 AM EST
    Just don't mix up dog paperwork and Joshua paperwork!  :)

    Parent
    Yes, but it was a long time ago (none / 0) (#25)
    by Inspector Gadget on Tue Mar 09, 2010 at 11:07:28 AM EST
    I had friends working there when it began turning into the greed machine it has become. Police escorts were used for layoffs.

    Parent
    Tax for service (none / 0) (#6)
    by Abdul Abulbul Amir on Tue Mar 09, 2010 at 08:31:58 AM EST

    Keep in mind that that a local business receives services that costs the state money that an out of state business does not enjoy.  It would not be fair to charge both the same rate.

    Parent
    That is why... (none / 0) (#61)
    by ScottW714 on Wed Mar 10, 2010 at 01:23:24 PM EST
    The use tax rate in Colorado is 2.9% (use tax is for purchases that come from another state)
    Sale tax rates vary, but probably 7% average.

    Parent
    nah .. i prefer amazon ... (none / 0) (#60)
    by nyrias on Wed Mar 10, 2010 at 01:04:32 PM EST
    small local stores are just inefficient.

    Plus, i prefer kindle e-books. You can start reading within a min of the purchase. No tax is just icing on the cake.

    Parent

    As a past internet retailer (5.00 / 1) (#10)
    by TeresaInSnow2 on Tue Mar 09, 2010 at 09:20:50 AM EST
    I can tell you that one huge reason I got out of the business was because of the fear of having to collect sales tax individually from the residents of each state and make 50 payments each year -- and potentially have 50 audits a year.  It would be a bookkeeping nightmare.  Maybe Amazon could really justify it, but it certainly wasn't worth it for a small business.   And the bottom line is that having to collect sales tax for each state is an excellent way to drive SMALL internet businesses out of business, while leaving the large ones to r*pe and pillage.

    Sorry about your affiliate program, but I am glad Amazon is taking a stand on this.  

    The reality is that individuals are supposed to pay tax on items they buy out of state by mail.  It's up to them to do so.  It's not up to one retailer to know the tax rates in every state -- and deal with the bookkeeping nightmare and potential audits.

    Wrong (none / 0) (#18)
    by ScottW714 on Tue Mar 09, 2010 at 10:13:13 AM EST
    This is wrong on so may levels...

    If you do not have a presence in a state it is up to the purchaser to self-assess.  If you are in Colorado and only have property in Colorado you would have to file a state return and any local returns, like Grand Junction.  And of course you would only have to charge and collect Colorado tax.

    There are fairly inexpensive programs that will keep up with tax rates and compliance issues.  No offense but your understanding of tax was reason enough to get of business.

    Parent

    I did a short retail gig a year ago (none / 0) (#23)
    by Inspector Gadget on Tue Mar 09, 2010 at 10:58:19 AM EST
    here in WA state. We had so many people claiming sales tax exemption privileges, it was disgusting. First question at checkout was "can I get your phone number?" They would provide a local number and half way through the ring-up, they would claim Oregon residency (forgetting they had provided a WA phone number) and their exemption from sales tax...WA state allows that. So, at the end, they would provide their OR driver's license and walk out saving themselves $50 in sales tax.

    We all knew they could have bought everything for the same price at their own OR stores and hardly drove 200 miles to purchase $500 in toys so they could drive 200 miles back home with their car full of bags.


    Parent

    To you (none / 0) (#29)
    by TeresaInSnow2 on Tue Mar 09, 2010 at 11:46:21 AM EST
    LOL, we currently aren't required to collect tax from every state.  Therefore what you say in theory may not actually be true in practice.  

    Keeping up with tax rates and compliance issues is not the whole story.  You can still be audited, which can be quite expensive.  Your understanding of the issue is simplistic.  You obviously never had a retail business.

    Walk a mile in our shoes before you talk.  Otherwise, you'll step in it....like you just did.

    Small retailers pay all kinds of taxes to their state.  The idea of requiring that they collect and pay taxes in other states, thus increasing their own overhead in bookkeeping costs by leaps and bounds is an excellent way to drive them out of business.  Enjoy that.

    It's up to the individual to pay use taxes. It's law that they're required to pay them, and the state should be policing their own citizens. Making small businesses police that at their own expense is wrong.

    And I have no dog in the Amazon fight.  I'm a Washington resident and pay tax on everything I buy from them.  If you think they need to charge tax in your state, then by all means, make sure that you report your use tax and pay it to your state.  It is, in fact the law.

    Parent

    No Offense, (none / 0) (#62)
    by ScottW714 on Wed Mar 10, 2010 at 02:24:32 PM EST
    but I work in Sales & Use tax and while I might not have a retail business I am responsible for remitting millions in sales tax every month.  

    I know this stuff inside out.  And if I could offer you a tip, if you know anyone that works for one of the big accounting firms, ask them to get your name put on their weekly tax newsletter.  It is an invaluable tool for compliance, it's what we use to keep current.  They never update, so once you are on it, you are set.

    I agree that taxes are extremely burdensome on the little guy because they make enough to get on the radar, but not enough to have tax staff and let's face it, tax people aren't cheap.

    I could care less about Amazon, it's become too big and hard to navigate.  But I suspect the new Colorado law will either get shot down in court or ignored.  How are they going to enforce it, audit individuals, that would require Amazon's help, and I doubt they are going to cooperate.  The state has no leverage on business with no property in the state.  

    Amazon is going to send them a customer list, they can not keep Amazon shipments out of the state w/o enlisting the feds, the USPS.  Only the truly honest will self assess.

    This is why states haven't tried to mess with internet sales, not because they don't want the $$, it because enforcement isn't plausible.

    Parent

    Several states have already told Amazon (none / 0) (#63)
    by jpe on Wed Mar 10, 2010 at 08:05:14 PM EST
    that it has to collect and remit sales tax, and those have been upheld in court. (NY, for example)  My hunch is that Amazon sees the writing on the wall, and that the next step after this is law is a collect and remit requirement.  So they're applying pressure now while their pressure can have maximum effect.

    Parent
    I lived in CO when (5.00 / 1) (#13)
    by jimakaPPJ on Tue Mar 09, 2010 at 09:46:58 AM EST
    it was a low tax state and demanded frugal government....

    Then the Californians moved in and ran up the property values and vote out the fiscal restraints and the state is going under.

    This is the result of that.

    So I took my inflated profits and ran.

    Bull honk (5.00 / 1) (#15)
    by Militarytracy on Tue Mar 09, 2010 at 09:52:07 AM EST
    TABOR stopped all that out of control taxation gone wild.  This is something different, this is states that are flat broke.  They are all BUSTED!

    Parent
    Hell, Alabama is now fighting (5.00 / 1) (#16)
    by Militarytracy on Tue Mar 09, 2010 at 09:54:21 AM EST
    about making BINGO legal to try to raise money for the schools.  I can't believe this Jesus ghetto really wants to fight about something that stupid, I mean we don't want our grannies going wild at the church social and losing twenty bucks and all their self control do we?

    Parent
    The charter school the kid I tutor attends (5.00 / 1) (#31)
    by oculus on Tue Mar 09, 2010 at 12:06:25 PM EST
    is having a dance for the parents.  Purpose:  raise money for sixth grade camp.  $35/couple.  And the parents accrue volunteer hours if they attend.  (Each parent must rack up 30 volunteer hours/school year.  Attending PTA mtgs. also counts.)  But where will these parents find $35?

    Parent
    I think charter schools taking such (5.00 / 1) (#34)
    by Militarytracy on Tue Mar 09, 2010 at 01:21:27 PM EST
    initiative is a good thing.  I really would like to find a charter school for Joshua like Globe in Colorado Springs.  And Globe required parental involvement and commitments of time.

    Parent
    And as for the extra $35 (none / 0) (#35)
    by Militarytracy on Tue Mar 09, 2010 at 01:23:17 PM EST
    It's hard to believe, but this has become a difficult thing for many many out there to scrape up extra right now.

    Parent
    I am thinking of paying the $35 for them (5.00 / 1) (#41)
    by oculus on Tue Mar 09, 2010 at 02:03:55 PM EST
    if they want to go to the dance.  I wanted to kick in for 6th grade camp anyhow. Another thing the school did to get the parents (mostly Latino and many who do not speak English) involved was to have parent meetings three Wed. nights early in the first semester for incoming students/parents.  Parents got volunteer hrs. for attending. And a lot of information as to what there students would be learning, how the school functions, goals, etc.

    Parent
    But Bingo... (none / 0) (#28)
    by kdog on Tue Mar 09, 2010 at 11:24:06 AM EST
    is an inalienable right!!...:)

    NY is way ahead of you guys...we're gonna elect Kristen Davis governor, legalize, and start taxing pot and prostitution...the P-Squared Platform!

    Parent

    Exactly... (5.00 / 3) (#22)
    by MileHi Hawkeye on Tue Mar 09, 2010 at 10:53:44 AM EST
    ...some people would rather spout their right -wing anti-tax talking point than take the time to actually look were we rank with regard to taxes before opining on such things.  Not to mention their lack of understand of the effects of TABOR.  

    Twenty-fifth overall in '06--right in the middle.  Thirtieth in property tax rates--even lower than the medium.

    But hey, if the perceived "high tax rate" is what it takes to get just one wingnut to move out of the State, who am I to complain?

    Parent

    Hurrah (5.00 / 1) (#40)
    by cal1942 on Tue Mar 09, 2010 at 01:46:52 PM EST
    In fact, double hurrah.

    Eliminating toxic waste from the community is always a good thing.

    Parent

    TABOR was voted out. (none / 0) (#53)
    by jimakaPPJ on Tue Mar 09, 2010 at 09:17:31 PM EST
    No. (none / 0) (#57)
    by MileHi Hawkeye on Wed Mar 10, 2010 at 08:08:01 AM EST
    TABOR was not "voted out".  Once again, you're speaking to things that you have no knowledge of.  

    Parent
    Well, I had a friend who told me it had been (none / 0) (#58)
    by jimakaPPJ on Wed Mar 10, 2010 at 08:26:01 AM EST
    And I am happy to be wrong.

    Parent
    I'd be glad to pay California (5.00 / 2) (#26)
    by Radiowalla on Tue Mar 09, 2010 at 11:09:43 AM EST
    sales tax on my Amazon purchases.  In fact, I'd be delighted.  California is suffering mightily from the after effects of Prop 13 and our economy needs a serious infusion of funds.

    I try to buy locally, but there are many times I can't find a book I need in local stores.  So I go to Amazon used book sellers and then try to find one in a blue state.  

    It's time to stop punishing local vendors in favor or internet businesses.

    Just my opinion.


    Not for nothing... (5.00 / 1) (#27)
    by kdog on Tue Mar 09, 2010 at 11:21:36 AM EST
    you can send Cali a check for any amount you wish R.W....believe you me they'll cash that puppy:)

    NY State sucked any such civic spirit outta me a long time ago...last thing I want is another cop hired or cage filled.  Soup kitchens or random homeless person is a much more worthy recipient of any extra scratch, imo.

    Parent

    On public radio program, one of the (none / 0) (#32)
    by oculus on Tue Mar 09, 2010 at 12:08:26 PM EST
    speakers sd. 8% of CA residences still qualify for Prop. 13 limit on property tax increases.  Same re 8% of commerical property.  

    Parent
    Can't speak to that (none / 0) (#47)
    by Radiowalla on Tue Mar 09, 2010 at 04:39:36 PM EST
    but I do know that my taxes are waaaay lower than the young couple next door.  It's not equitable.  

    Parent
    This will probably be a net loss (4.00 / 1) (#5)
    by Abdul Abulbul Amir on Tue Mar 09, 2010 at 08:24:42 AM EST

    This will probably be a net revenue loss to Colorado.  They will no longer have the revenue generated by the tax on income of the referrals.  

    TalkLeft had some income subject to the Colorado income tax from Amazon.  No more.

    BTW, requiring an internet seller to know the sales tax rates in hundreds of jurisdictions and what is and is not taxable in each should be embraced by biggies like Amazon.  The compliance cost would drive smaller operations out of the market.

    This is Colorado being Colorado (none / 0) (#3)
    by ScottW714 on Tue Mar 09, 2010 at 08:10:36 AM EST
    Sales Tax in my profession and this is pure non-sense.  The reason internet sales have been tax free isn't out of any generosity on the jurisdictions behalf, it because there is no way to enforce or hold a company accountable when they have no property in the state.

    Traditionally a business needs some sort of property in a state in order to establish nexus.  Once nexus is established then the state has the ability to regulate and audit a business.

    Let's say Amazon decides to ignore Colorado, what does Colorado think they are going to do, go to California and demand payment or else ?  If Amazon had a place of business, property, then they could threaten to seize said property.

    I suspect this is why Amazon is dropping accounts, because Colorado affiliates actually have property in the state and Colorado can force the residents to pay/charge/collect sales tax.  So instead of helping the state with their non-sense, they stuck it to the residence in hopes they will cry loud enough to get it in front of a judge.

    I hate it (none / 0) (#8)
    by itscookin on Tue Mar 09, 2010 at 09:09:58 AM EST
    when a company I do business with online opens  brick and mortar sales outlet in my state. Automatic 6.25% raise in price for anything other than food or clothing that I buy online.

    Sales Tax? (none / 0) (#39)
    by Socraticsilence on Tue Mar 09, 2010 at 01:44:21 PM EST
    Aw, one of the few advantages of living in Montana- no, sales tax. (the state generates funding via income and property taxes, as well as tourist taxes- defacto sales taxes on things like Hotel Rooms)

    A question (none / 0) (#42)
    by cal1942 on Tue Mar 09, 2010 at 02:08:23 PM EST
    Is the income tax graduated?

    Parent
    Yes but (none / 0) (#45)
    by Socraticsilence on Tue Mar 09, 2010 at 03:15:59 PM EST
    the structure is such that it is a bit odd- the sliding scale starts at 1% for between 0 and I think 2500, and goes up gradually til it hits 6.9% for every dollar over 16,500 (I think it might be 16950).

    Parent
    They can call it (none / 0) (#55)
    by cal1942 on Tue Mar 09, 2010 at 11:28:55 PM EST
    progressive and be technically correct.  For the great majority of wage earners it certainly isn't progressive.

    Close but no cigar.

    If it were truly progressive we'd have to call Montana, red state or no, enlightened.

    Parent

    Internet Tax (none / 0) (#52)
    by Retired on Tue Mar 09, 2010 at 08:34:29 PM EST
    Cheers to Amazon who is already taxed in their home state so why should CO tax me to receive a purchase.  
    Next they will be waiting at state border and charge entry tax to use their roads...

    Horrible... (none / 0) (#59)
    by masslib on Wed Mar 10, 2010 at 08:27:20 AM EST
    I do business with Amazon.  It would be devastating for me if this passed here.  Very bad policy.