Amazon cuts off Colo. affiliates because of tax

By The AP
Monday, March 8, 2010

DENVER — Amazon is cutting off affiliates that help it sell products in Colorado because of a new tax on online sales.

Affiliates earn money by using their Web sites to link customers to online sellers like Amazon.

Amazon told affiliates in an e-mail today it would no longer pay them advertising fees because of the new law.

The law says online retailers have to start collecting state sales tax themselves or send annual notices to customers telling them to pay the tax.

Amazon says the law is cumbersome and no other state has similar rules.

Affiliates feared the tax would hurt them and lawmakers changed the bill to try to prevent them from being harmed.