Amaz... Gone

Pity bloggers and other online publishers in Colorado who spent years partnering with Amazon.com to build commission revenue for their websites. Amazon will no longer accept sales emanating from the state's websites, blaming a new law that applies a state sales tax to purchases.

Colorado Governor Bill Ritter, working with his fellow Democrats, signed the tax into law about a week ago over the objections of Republicans and business leaders who said taxes would scare away business. But Ritter and supporters of the tax said the state is struggling with multi-year spending cuts amid the recession and needs the revenue to preserve essential services. Ritter, in a news release, said he felt betrayed by Amazon's action: “My office worked closely with Amazon’s affiliates and associates to modify House Bill 1193 to specifically protect small businesses, avoid job losses and provide a fair, level playing field for on-line retailers and Main Street, brick-and-mortar retail shops alike."

Amazon cast a different light on the process in a letter to affiliates, who receive commissions for Amazon sales that emanate from their websites: "We and many others strongly opposed this legislation, known as HB 10-1193, but it was enacted anyway. Regrettably, as a result of the new law, we have decided to stop advertising through Associates based in Colorado. We plan to continue to sell to Colorado residents, however, and will advertise through other channels, including through Associates based in other states."

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