Amazon Shrugs in Colorado

The reaction of Amazon.com to Colorado’s new law regarding sales tax nexus and use tax reporting are on a peHub blog post by SRS’ Paul Koenig. While the original legislation tried to expand Colorado’s sales tax nexus to increase revenue collection and level the retail playing field for in-state sellers, the enacted legislation merely implemented burdensome and costly new sales reporting requirements on out-of state sellers. Amazon reacted by announcing that it will continue to sell directly to consumers in Colorado — and thus presumably be subject to the new reporting requirements — but nonetheless will terminate all its affiliate relationships in the state in an effort to restrict its sales collection nexus.