Amazon Reacts to Tax Law by Dumping Colorado Affiliates

March 9, 2010 /EIN PRESSWIRE/ A law enacted by legislators mandating online retailers notify their shoppers in Colorado that they must pay a 2.9 percent sales tax on purchases has provoked Amazon.com to sever ties with the Colorado-based participants of its affiliate program.

Amazon sent an email to its affiliates Monday, saying 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.”

Gov. Bill Ritter issued a statement saying Amazon is “simply trying to avoid compliance with Colorado law.” The author of the bill, Jack Pommer, went step one further, saying “It’s blackmail, it’s flat-out blackmail. It shows the lengths to which they’ll go to keep the advantage they have over other local businesses.”

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