Colorado Internet Retail Tax – Bill HB-1193
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We started this blog so that online marketers can discover info about the proposed internet retail tax bill in Colorado.
If you’re not familiar with this bill and how it can affect your online business we have a number of resources you should review right away.
Here’s an excerpt from a letter we received from Overstock which explains the situation.
“Overstock.com values your advertising efforts on our behalf, and we hope to be in a position to continue our business connection for years to come. However, we are writing to inform you the Colorado state legislature has introduced a bill which puts our continued relationship in jeopardy. HB 1193 (Concerning the Collection of Sales and Use Taxes on Sales Made by Out‐of‐State Retailers) was introduced on January 22, 2010. We are told the bill is moving quickly. This bill is modeled on a bill first passed in New York. The legislation attempts to establish responsibility for collection of sales tax for out‐of‐state retailers if those out‐of‐state retailers use Colorado‐based affiliate advertisers.
We believe such bills are not only harmful to business, but unconstitutional and contrary decisions by the U.S. Supreme Court. More importantly, if HB 1193 passes, Overstock.com will have to sever relationships with Colorado Affiliates before the bill becomes law. We have done this in each state where such legislation has passed: New York, North Carolina and Rhode Island.”
As Affiliate Marketers who live in Colorado, we know this bill is a really bad idea for the State of Colorado and for small businesses. The State will will lose millions in Tax revenues as Affiliates are terminated and move their businesses and families out of the State.
Feel free to share your thoughts below.
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States are desperate for tax money so it’s no surprise they would go after any and all revenue streams. However they’ve missed the fact that ‘affiliate marketers’ are independent and Overstock.com and other companies who utilized independent marketers will lose MILLIONS if such a bill is passed. RedHeadline will follow up with this as well.
They don’t get it. Merchants, retailers, and networks are point blank telling affiliates in Colorado that they will be dropped if the law passes.
Companies are being FORCED to move operations out of state or go out of business. This will not be a choice, retailers flat out will not work with companies in Colorado. The revenue will be gone and along with it the taxes already collected on said revenue.
This is exactly what happened in the other states that these laws passed (IE New York) and this is exactly what will happen here.
The legislators writing this law know nothing about the industry or e-commerce in general and they look just plain silly.
So, one by one overstock, amazon, and all the other affiliate-based systems will just count states out of their referral payments and new business funnels? I’m certainly not for taxing the Internet but if it ever actually passes, certainly all these big companies will come up with some alternative model and you’ll see them suddenly “opening up” again so that affiliates will be able to sell in that state.
Of course, some States will finally realize that Affiliates actually pay State taxes on their earnings and contribute millions to their economies.
Who knows they may actually try to attract Affiliates to move out of other “advertising tax” States.
This sort of attitude is to be expected with our current government mindset. Tax anyone making money to penalize them for doing so. Socialism at it’s best. Perhaps spending responsibly would make the current tax revenue go further.
[...] This post was mentioned on Twitter by New Following, Miles T. Miles T said: Colorado Internet Retail Tax Bill HB-1193 – this is not good for affiliate marketers, product creators or jobs. http://ow.ly/119q8 [...]
My husband and I have been coordinating affiliate efforts on this bill. In fact, I testified before the finance committee yesterday about this matter.
It’s important that we stick together and have the same message, Make sure to register with the http://www.performancemarketingassociation.com so that you’ll get the official updates and direction on what to do next. I’m not part of the PMA, but they have been wonderful in guiding us rookies through the workings of the legislature. Their experience gleaned from other states fighting the same issue has been invaluable.
With coordination and enthusiasm, we can make a huge difference in the final result.