Yesterday, Amazon cancelled its affiliate relationships here in Colorado, in response to HB10-1193, which will subject Internet purchases – even those through companies with no physical presence in Colorado – to the state’s 2.9% sales tax.
I personally was an Amazon affiliate, although over the course of several years I’d be surprised if I made more than $150 from it. But many larger affiliates got blindsided by this move. It was particularly surprising, given that the State Senate had amended the bill – under an intense lobbying campaign from affiliates.
Nevertheless, the posturing on this borders on the ridiculous. The House – District 6′s Lois Court included – was willing to vote to create an unenforceable tax that will raise virtually no money and makes the state look absurd in the process. And they were willing to put the screws to the very affiliates that they now profess to have sympathy for. Amazon apparently warned the legislature that this was going to happen, and they paid no heed.
In the long run, the state will be better served by looking for ways to cut unnecesary programs than by engaging in this sort of budgetary legerdemain.
Further thoughts on this bill here.
