There’s power in numbers! Colorado defeated the Internet tax because of the combined efforts of the 4,200 affiliate marketing companies in the state.

Marc Braunstein owns one of those 4,200 affiliate marketing companies. Writing for Forbes.com, he said:

“Thanks to a concerted effort of Colorado’s 4,200 affiliate marketing companies voicing their concerns at the highest levels of government and the state’s willingness to listen, the ‘affiliate tax’ portion of the bill has been completely eliminated in the legislation that passed on Wednesday.”

State governments have been trying for years to figure out a way to legally level state sales tax on Internet sales. Fortunately, they haven’t had any luck so far — thanks to the Supreme Court.

In 1992 the Supreme Court ruled that companies can “only be required to collect and remit sales tax in a state if they actually have a physical ‘nexus,’ or presence, in the state.”

Affiliate marketers and affiliate marketing companies in other states need to take note of what happened in Colorado when their state government decided to fix the “tax shortfall” by collecting a sales tax on Internet sales.

Mr. Braunstein reports:

“Colorado’s online affiliate companies joined forces with bloggers, online retailers, business leaders and the Performance Marketing Association in a massive coordinated effort to educate legislatures on the pitfalls of the HB 1193 bill—spending many 15-hour days at the Capitol building testifying and lobbying against the proposed legislation.”

It worked! There will be no Internet sales tax in Colorado!