After the new sales-tax regulations on online vendors, Amazon. com Inc. decided to drop its advertising retailers in Colorado.

On Monday, Amazon sent an email to its associates, who earn a commission for providing links to the online retailer on their own Web sites, which said, "As a result of the new law, we have decided to stop advertising through associates based in Colorado".

Online booksellers to individual bloggers, who advertised Amazon on their websites and received a fee, in return, were both angry and perplexed by this decision. Some associates claim that they were not even informed.

Judith Briles, Chief Executive Officer of Mile High Press, a book publisher in Aurora, said, "We had to find out from others, and we will lose 10% of our revenues. Amazon is going to get horrendous publicity for this. But there are two bad guys, Amazon and the lawmakers who moved this legislation through so fast".

If a retailer does not have a physical presence in the state, Federal law prohibits them from collecting sales tax on purchases.

Under the Colorado Governor's new regulations, online retailers should either collect sales tax or share information with the state about all of the purchases made by inhabitants, so that it can call those citizens to pay so-called use tax on the purchases.