Amy and I stayed in downtown Boulder over the weekend. It was pouring rain on Friday afternoon, flawlessly beautiful on Saturday through Sunday morning when we went for a long walk on the Boulder Creek Path, and then it snowed overnight last night. Here’s the view from our window.
My iPhone tells me that it’s going to be 70 degrees on Wednesday. Welcome to spring time in Boulder.
Colorado HB10-1193 – also known as the “Amazon Tax” – really upset me as I wrote about in Amazon Fires Its Affiliates in Colorado (Including Me) Because of Colorado HB 10-1193. While I discovered a partial solution via a service from a company called Viglink which I wrote about in I’m An Amazon Affiliate Again – Sort Of I’m still really annoyed with the myopia of our Colorado state representatives around this issue.
I’m also disgusted by the protectionist turn this took as our governor, many representatives, and several progressive organizations that I’ve supported called for a ban on Amazon because of the need to “level the playing field for local merchants.” When I talked to a number of folks about this, including the organizations that I had previous supported, they demonstrated that they didn’t really understand the issue, were getting confused about states rights vs. federal rights (an issue I expect we’ll see come up a lot over the next few years given our federal, state, and local government search for additional revenue wherever they can find it), and didn’t get that a protectionist attitude was actually offensive to most business people (except, presumably, those being protected by the government.)
Finally, legislation like this is completely tone deaf to both the growing impact of technology on our society as well as a huge shift in the way information based goods are bought and sold.
I’ve been told by several Colorado representatives that didn’t support this bill that there is no way this tax will be repealed, but I haven’t given up yet. I’ve enlisted my friend David Binetti to crank up another Twitter Campaign To Repeal Colorado’s Internet Tax. If you are a Colorado citizen with a twitter account, it’ll take less than a minute to tweet out this message along with delivering a physical letter to your specific representatives.
Let’s make sure our representatives know that this is a piece of legislation that should be repealed.
After the chaos of some days, it’s a delight to come home, stand outside, and look at my backyard.
Today was (another) one of those days.
Amy and I love sushi. While my sushi dining experiences have been limited to the US and Europe, I’ve had a number of amazing sushi dinners, including Masa in New York. Boulder has a bizarrely large number of sushi restaurants and over the years we’ve frequented them all numerous times.
A year or so ago a new one – Kasa Japanese Grill and Bar – opened up on the corner of Pearl and 15th. It’s around the corner from our condo in Boulder so we stopped in a few times. The first time went there it was empty, but the owner and manager Mimi was delightful and upbeat, shining her happiness on us. As we kept going back, the number of people in the restaurant at any given time increased, but Mimi always welcomed us as if she was welcoming us into her home, doted over us, and made sure we had an amazing time.
Last week Kasa finally got a review that it had long deserved when the Boulder Camera wrote Kasa Japanese Grill review: Delicious excess has its place. Amy and I had dinner at Kasa tonight with our friends Tim Enwall and Hillary Hall and the place was packed. It was fun to watch Mimi run from table to table, making sure everyone was having a great time as her staff did the same.
I’m a Kasa regular and hope to be for a long time. I’m psyched they are getting the recognition they’ve been working hard for. The next time you think of sushi in Boulder, give them a try.
Andrew Hyde has decided to organize another Boulder Startup Week on May 4 – 8, 2010. Tons of folks are already committed to host events including Trada, Pivotal Labs, Everlater, QuickLeft, TechStars, Napkin Labs, and SurveyGizmo. The Boulder New Tech Meetup and Ignite Boulder is also happening that week.
It’s free – register now and mark it on Plancast.
The Boulder Fiber Forever project to bring Google’s 1 Gbps fiber network to Boulder is having a flash mob at the Walnut Brewery (1123 Walnut Street) today (Sunday) from 3pm – 6pm. Come join us, but first go to Boulderfiber.com and add your support for the effort. Then, head over the the Walnut Brewery between 3pm and 6pm, mention Boulderfiber, and get pints of some of the best beer in Boulder for $2.25.
I’m running to town from Eldo today and should be there around 5pm. I’ll see you there.
I’ve been an Amazon Associate (Amazon’s affiliate program) for many years. Today I got the following notice in my Amazon Associates account.
and I woke up to the following email.
Dear Colorado-based Amazon Associate:
We are writing from the Amazon Associates Program to inform you that the Colorado government recently enacted a law to impose sales tax regulations on online retailers. The regulations are burdensome and no other state has similar rules. The new regulations do not require online retailers to collect sales tax. Instead, they are clearly intended to increase the compliance burden to a point where online retailers will be induced to “voluntarily” collect Colorado sales tax — a course we won’t take.
We and many others strongly opposed this legislation, known as HB 10-1193, but it was enacted anyway. Regrettably, as a result of the new law, we have decided to stop advertising through Associates based in Colorado. We plan to continue to sell to Colorado residents, however, and will advertise through other channels, including through Associates based in other states.
There is a right way for Colorado to pursue its revenue goals, but this new law is a wrong way. As we repeatedly communicated to Colorado legislators, including those who sponsored and supported the new law, we are not opposed to collecting sales tax within a constitutionally-permissible system applied even-handedly. The US Supreme Court has defined what would be constitutional, and if Colorado would repeal the current law or follow the constitutional approach to collection, we would welcome the opportunity to reinstate Colorado-based Associates.
You may express your views of Colorado’s new law to members of the General Assembly and to Governor Ritter, who signed the bill.
Your Associates account has been closed as of March 8, 2010, and we will no longer pay advertising fees for customers you refer to Amazon.com after that date. Please be assured that all qualifying advertising fees earned prior to March 8, 2010, will be processed and paid in accordance with our regular payment schedule. Based on your account closure date of March 8, any final payments will be paid by May 31, 2010.
We have enjoyed working with you and other Colorado-based participants in the Amazon Associates Program, and wish you all the best in your future.
I’ve been a supporter of Governor Ritter since his campaign for governor and have worked hard to positively impact Colorado’s software / Internet / technology / entrepreneurial ecosystem. Over the past two months, I’ve privately expressed my outrage over HB10-1192 and HB10-1193 to several people in Ritter’s administration. I watched as numerous people in the software / Internet community tried their hardest to help our legislators, the governor, and their staffs understand why this is such a huge step backwards for Colorado. I was told several times “don’t worry – we’ll take care off all the silly stuff.” There seemed to be enough folks showing up to discuss this that I thought rational minds would prevail.
I made a huge mistake. I should have come out very publicly about this when I first heard about it, made sure everyone that I supported during the elections that supported these bills (including one of the co-sponsors) knew my opinion and understood why they had the potential to be so detrimental to the software / Internet / entrepreneurial climate in Colorado. Shame on me for not being more aggressive, although there are some days I definitely feel like there are only so many fronts I can deal with outside my very full time day job.
I’m not at all surprised by this action on Amazon’s part. I expect the Internet Affiliate business in Colorado will completely die within the next thirty days (every company that has an affiliate business will turn off all of their Colorado-based affiliates.)
I then received the following email from Colorado Governor Ritter
Gov. Bill Ritter issued the following statement today criticizing Amazon.com’s decision to abruptly end its financial relationship with Amazon Associate businesses in Colorado:
“Amazon has taken a disappointing – and completely unjustified – step of ending its relationship with associates. While Amazon is blaming a new state law for its action, the fact is that Amazon is simply trying to avoid compliance with Colorado law and is unfairly punishing Colorado businesses in the process.
“My office worked closely with Amazon’s affiliates and associates to modify House Bill 1193 to specifically protect small businesses, avoid job losses and provide a fair, level playing field for on-line retailers and Main Street, brick-and-mortar retail shops alike.
“Amazon’s position is unfortunate, and Coloradans certainly deserve better.”
I’m especially disappointed in the Governor’s statement – it’s completely tone deaf to the actual issue and what Amazon is clearly stating. I’ve heard several people saying “Amazon is the problem” or “well – this is good – now people will buy locally.” Neither of these statements is valid – Amazon behaved like a rational company in the face of government regulation that had no upside for them and substantial downside. Also, this has zero impact on consumer purchasing activity as this doesn’t impact the end customer of Amazon products in any way.
Rather, the many small businesses and solo entrepreneurs who make money off of Amazon’s affiliate program just lost a revenue stream (which, by the way, is used to employ people and pay state taxes.) Colorado just got a big black eye in their historical effort to be a place that is friendly to business, especially high growth technology companies. And our state government likely now has lost more tax revenue than it was going to gain through the bill in the first place while simultaneously damaging the revenue streams for many small Colorado businesses.
The only logical solution in my book is what Amazon says in paragraph 3.
There is a right way for Colorado to pursue its revenue goals, but this new law is a wrong way. As we repeatedly communicated to Colorado legislators, including those who sponsored and supported the new law, we are not opposed to collecting sales tax within a constitutionally-permissible system applied even-handedly. The US Supreme Court has defined what would be constitutional, and if Colorado would repeal the current law or follow the constitutional approach to collection, we would welcome the opportunity to reinstate Colorado-based Associates.
If you live in Boulder, it’s time to help bring the Google Fiber experiment to our awesome city. A bunch of folks from all over Boulder are working on the Boulder Fiber project to help us become one of the cities for the Google Fiber for Communities project.
Boulder is a perfect city for this. When I moved here in 1995 I didn’t expect to engage in much business as I was spending most of my time in Boston, NY, and San Francisco. However, I discovered an incredibly smart community that was extremely computer and Internet savvy. As the commercial Internet started to take off in the mid-1990’s, Boulder was a hotbed for Internet usage and innovation as we rapidly became an incredibly wired city. I attributed this to the convergence of (a) a smart, well-educated population, (b) a university at the core of the city, (c) a bunch of national labs, (d) a solid legacy of tech startups, especially around storage, cable, and telecom, and (e) a strong culture of independence which was well suited to all things Internet.
What I didn’t realize at the time were two important metrics that underscore both the technology and the entrepreneurial energy in Boulder. The two metrics are that on a per-capita basis, Boulder has the highest percentage of computer scientists and the highest percentage of Ph.D.’s in the US. When combined with a vibrant entrepreneurial community that has deep software and Internet expertise, magic things happen.
We’ve seen a lot of this magic in Boulder in the past five years. I’m proud of how the city I call home has arisen as one of the most important entrepreneurial communities in the US with much more activity, visibility, and influence than a city with a population of 150,000 typically has. More importantly, the amount of innovation coming out of Boulder is extraordinary.
Google has put out a challenge to find communities that are willing to be a test bed for an experimental ultra-high speed broadband network to see what kind of innovation will emerge. If you are a member of the Boulder community, even if you aren’t in the high tech or entrepreneurial sector, help us tell Google why Boulder is the best city in the US for this experiment.
If you are game to help, do the following things:
Amy Cosper, the editor-in-chief of Entrepreneur Magazine, swung through Boulder recently and interviewed me, Scott McDaniel & Christian Vaneh of Survey Gizmo, Ari Newman of Filtrbox (recently acquired by Jive Software), Todd Vernon of Lijit Networks, and Tim Enwall of Tendril Networks. Unlike my two hour TWiST interview with Jason Calacanis, these are all short (less than three minutes each), punchy, and give you a great feel for some of my favorite Boulder entrepreneurs.