Yesterday a sad news came from Colorado: the House Bill 1193 (aka “Amazon tax” or “affiliate tax”, but really an “advertising tax”) has passed the House (33 “yes” to 32 “no”), and moved on to the Colorado Senate where it will undergo a similar consideration and voting route.
This process is first an initial reading and then it will to a Senate committee. The committee will take action, either recommend passage or not. It moves back to Senate floor for second reading, voice vote and then third reading and recorded vote.
From there the bill will move to the Governor. He’ll either sign, veto or take no action in which case it automatically becomes law.
Lisa Picarille has pointed out that should the bill become legislation, it “will crush more than 5,000 affiliate jobs in Colorado.” This very argument was presented in the House, but “has fallen on deaf ears.” Lisa continues:
Neither party seems to fully grasp that the $4.7 million in revenue the bill is projected to raise in 2010 will be completed negated if merchants doing business with Colorado-based affiliates simply terminate those relationships once the bill is passed. In addition, the income tax paid to the state by the terminated affiliates will also be dramatically reduced if their primary source of income is obliterated.
This bill is a lose-lose situation. Colorado will not gain the additional revenue it seeks for hiring more teachers and a vibrant and thriving community of small businesses will be put out of business in the process.
Read more here and here, contact your representative in the Senate, and if you are a Colorado-based affiliate, be prepared to adjust your marketing strategies to partner with the merchants that understand your situation and value your participation.