The pushing match between Amazon.com, its Colorado marketing affiliates and the state already has caused some bruises, and now grassroots groups are shoving back.
Amazon fired its marketing affiliates in Colorado earlier this week in what’s being called retaliation for a new e-commerce law signed by Governor Ritter, which seeks to require Amazon and other online retailers to notify customers that they owe state sales tax on their purchases. Now, the drama is heating up with grassroots groups calling for a boycott of the online retailer.
Alec Harris, an analyst with the Colorado Fiscal Policy Institute, supports the online tax law and the boycott, saying Amazon’s claim the new requirements are “unduly burdensome” is an overstatement.
“This bill is just asking Amazon to inform their consumers — it strikes me that that’s sort of on par with, and maybe even a little bit below, what a lot of the retailers are already doing.”
Other retailers, such as Best Buy and Target, operate both online and retail stores in Colorado and collect sales tax from both types of transactions, Harris points out. Republican lawmakers in Denver have called for a repeal of the law, but supporters say that would amount to appeasing a bully. Harris hopes the boycott will send a simple message to Amazon.
“This is the law; this is what a good majority of retailers already do; we think it’s only fair for Colorado businesses that you do the same.”
An Amazon spokesperson would not comment on the reason for cutting ties with Colorado affiliates, but said they see the new law as a way to pressure online retailers into eventually collecting sales tax voluntarily.
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