If you’re not familiar with this bill and how it can affect your online business we have a number of resources you should review right away.

Here’s an excerpt from a letter we received from Overstock which explains the situation.

“Overstock.com values your advertising efforts on our behalf, and we hope to be in a position to continue our business connection for years to come. However, we are writing to inform you the Colorado state legislature has introduced a bill which puts our continued relationship in jeopardy.  HB 1193 (Concerning the Collection of Sales and Use Taxes on Sales Made by Out‐of‐State Retailers) was introduced on January 22, 2010. We are told the bill is moving quickly. This bill is modeled on a bill first passed in New York. The legislation attempts to establish responsibility for collection of sales tax for out‐of‐state retailers if those out‐of‐state retailers use Colorado‐based affiliate advertisers.

We believe such bills are not only harmful to business, but unconstitutional and contrary decisions by the U.S. Supreme Court. More importantly, if HB 1193 passes, Overstock.com will have to sever relationships with Colorado Affiliates before the bill becomes law. We have done this in each state where such legislation has passed: New York, North Carolina and Rhode Island.”

As Affiliate Marketers who live in Colorado, we know this bill is a really bad idea for the State of Colorado and for small businesses.  The State will will lose millions in Tax revenues as Affiliates are terminated and move their businesses and families out of the State.

Feel free to share your thoughts below.