On-line purchases are taxed in Colorado
Tuesday, March 9th, 2010Every online retailer who sells to a Colorado purchaser and doesn’t collect sales tax will be required to put a notice in the customer’s invoice. Colorado purchasers are obligated to pay sales tax , approximately 2.9 percent, in the state of Colorado for their purchases. At the end of the year, online retailers need to provide customer lists and their purchase history to the state’s revenue department. If you don’t pay this tax, the state will come after you for the money.
So whose bright idea was this? The Democrat majority run legislature in Colorado enacted a law that was quickly signed by Governor Ritter (D) on March 1, 2010. This law covers sales taxes on purchase of items online that puts the onus for collecting tax revenue squarely on the shoulders of retailers and consumers.
As a result, online retail giant Amazon.com notified web-based affiliate businesses across Colorado on Monday that it is dropping them because of this new state sales tax law. Amazon will continue to sell to Colorado residents online but will no longer market through online Colorado affiliates. Amazon.com Inc. (NASDAQ: AMZN) has a national network of bloggers and Internet-based businesses that generate commissions themselves by driving sales from links on their websites to Amazon.com.
Who is suffering from this tax law? Small business owners are suffering. They make money as an affiliate to Amazon, now this stupid law is hurting their revenue.
However, Colorado Gov. Bill Ritter issued a statement Monday criticizing Amazon.com’s move. He said, “Amazon has taken a disappointing – and completely unjustified – step of ending its relationship with associates. While Amazon is blaming a new state law for its action, the fact is that Amazon is simply trying to avoid compliance with Colorado law and is unfairly punishing Colorado businesses in the process. My office worked closely with Amazon’s affiliates and associates to modify House Bill 1193 to specifically protect small businesses to avoid job losses and provide a fair, level playing field for on-line retailers and Main Street, brick-and-mortar retail shops alike. Amazon’s position is unfortunate, and Coloradans certainly deserve better.”
Well, Governor Ritter and your Democrat buddies, if you were more fiscally responsible with taxpayers’ money, you wouldn’t have to impose this idiotic sales tax on online retail sales. Why is it that Democrats are always looking at ways to tax our way of life? We now have a tax on soda, candy and software products. Colorado hiked vehicle registration fees over three years starting at an extra $22.50 up to $29.00 per year to pay for roads and highways. But Mr. Ritter aren’t you getting some Stimulus money for this? That’s what the $100+ signs say throughout the state. And you still complain that you have to cut additional money from the state’s budget.
What are you doing with our money? Stop taxing us and learn how to work within a budget.
Until later,
Linda
