How you can help. Re: #advertisingtax

I’ve had a lot of emails come to me asking “How can I help” with regards to the proposed “Affiliate Sale Tax” laws in so many States.

So – I’ve put together a little post about what I think speficially you can do – right now.

  1. The most important thing is to locate, and initiate contact with your local state representative. Usually, they are nearby and generally easy to contact. Their offices are typically quick to respond to local residents.Here are some talking points to go over when talking with your representative.
    1. Point out that while States are estimating that these laws will bring in revenue – they are misjudging online retailers. Online retailers are instead simply cancelling their contracts with advertisers in those States. As proof of this you can point out the following thread on ABestWeb which is a list of retailers who dropped NY based affiliates: http://forum.abestweb.com/showthread.php?t=105869. You can also point them to the following document which (on page 6) shows a letter from Amazon’s Vice President indicating their intention to drop all contracts with advertisers based in Hawaii. http://www.capitol.hawaii.gov/session2009/Testimony/HB1405_Testimony_EDT_03-20-09.pdfThese two items are not the only examples, but are good ones. They show that the effect of these laws is instead a negative impact on local businesses and jobs, as opposed to a positive impact of generated tax revenue.
    2. Point out how if other States are declaring nexus based on a certain type of advertiser, that this essentially singles out a specific group of advertisers based solely on how they are paid. Television, radio, print – all of these items are not considered in the nexus discussion, but online affiliate marketing is being singled out. You can point out that most affiliate marketers are small businesses that have little recourse and will be forced to drastically change their operations. The actions of the State governments are directly and negatively affecting small business growth in the economy at a time when small business growth is desperately needed.

      Wherever possible, use the word “advertiser” as opposed to the word “affiliate” as the word “affiliate” is misunderstood everywhere else with the exception of our industry. “Affiliate” implys a more closely tied connection to the host corporation than is realistic in our industry.

    3. Point them to the U.S. Supreme Court decision of Quill v. North Dakota which clearly ruled on this issue some 20 years ago and that some of these States are ignoring. (http://www.law.cornell.edu/supct/html/91-0194.ZO.html)Further you can point them to the following document from California which mentions, and cites the “Quill” decision as a specific reason why these types of laws haven’t been put in place in the past.

      California Taxpayers Association Fact Sheet:
      http://www.caltax.org/SalesTaxNexusFactSheet3-2-09.pdf

     

  2. Besides contacting your local representative, which we all should do no matter what State we live in (we are all affected), you can be a big help just by reaching out to your contacts acorss the country.
  3.  

    We all know a lot of people, and you never know who can be of help. Send out an email to your contacts and ask them “Does anyone have any contacts at the State Government level for any State?”. Explain the issue, point them to this blog if you wish or others (www.nyaffiliatevoice.com is a good one).

    See if you can help someone in another State just by providing a contact in their own local government.

    We have Facebooks, Twitters, LinkedIns, etc… Now is the time to use them to network for each other and see what we can all do to help individuals who are in other States.

     

  4. Blog it, Twitter it, Talk about it. Use the hashtag #affiliatetax or #advertisingtax (includes more people) and get the word out there. When you see a Twitter about it – ReTweet it. Comment on people’s blogs, Digg blog posts, etc… All of this will help us get the word out to the public and mass media. If you have contacts in media (print, online, tv, radio, whatever…), talk to them.
  5. Most importantly, don’t think this issue doesn’t affect you because you don’t live in New York, California, etc… This industry needs your help – please put down whatever differences you have with any individual groups and help out who needs to be helped. It won’t matter who gets credit in any individual fight, we all need to help each other to make sure we can all continue to operate as usual.

Comments

  1. says

    Everyone: even if you don’t consider yourself an ‘activist’ or an expert on this topic — please find a way to voice your opposition.

    Sign a group letter (there is already one for California at http://tinyurl.com/cnq2my) or start a group letter for your state!

    If you don’t reside in one of the states with a currently proposed bill — find someone in your personal or professional contact list that does, and ask him/her to sign the letter.

    This is an uphill, tough battle, but it is important that we fight. So, please, take action!

  2. says

    Brian –

    Thank you for the post. This is an important and material issue for all parties involved – affiliates, advertisers, publishers, retailers, search engines, etc. I read through the court case provided, Quill. It was helpful to read the ruling itself. One thing I noted is that the Quill case relies heavily on the Bellas Hess case from 1967. I would recommend that anyone else interested in research the topic also take the time to read the National Bellas Hess case – here is the link:

    http://supreme.justia.com/us/386/753/case.html

    Time for an Ecommerce Tea Party me thinks.

  3. Joe says

    the last time I checked the state of Indiana had signed reciprocal agreements with about 25 states, soon all of us who live in these states will have to collect sales tax for those states plus NY and Cal. which are not yet part of the “pact” unfortunately it wont be long before all 50 states jump on board…

    Especially now that most state are in the red and looking for any way to raise revenue….

    I also expect the IRS to start cracking down on online sellers who don’t file…

    I can see the IRS sending letter to anyone who owns a US based domain name and requiring us to prove we are not earning income from that domain…

    [removed political portion of post - admin]

  4. says

    Does anyone know how Brian’s suggestions can be streamlined? Can a petition be created users can then sign and blast to their state reps and personal contacts? Even though many people may not reside in that state, the reps can see this is an important issue. Or at least there are people fighting back.

  5. says

    Would be nice if we could get some sort of moratorium on an affiliate tax from a national perspective to stop individual states. This would be a tax on the smallest of the little guys and a nightmare to track and administer.

    Because of the reciprocal agreements between states, EVERY state representative needs to be contacted about this.

  6. Holly says

    Well, let’s see… Here in Florida, they have raised the cost of renewing your tag for your vehicle/vessl. Then they added more tax to tobacco products, hoping people would quit. Now, I read about charging tax for online affiliate marketing.
    Geez, what’s next… being taxed by how much air you breath or how many times you use the restroom?
    They already have the death/estate tax! Ypu pay to live and pay to die.
    Good grief, Charlis Brown!!

Trackbacks

  1. [...] People forget to pay attention because life happens: responsibilities, bills, families, etc. At the same time we cannot forget how this will affect us in the long run. Giving the little time we have and making it quality time is the key. If you really listen to what is going on around you; you could be a great assest to someone or a collective group of people in ways you didn’t even think were possible. If we make the decision to be present in our daily situations, I promise, things will get accomplished for the greater good of everyone. In doing this we could find the solutions to our everyday problems whether big or small. Give a little, gain more in return. How you can help. [...]

  2. [...] How you can help re: #affiliatetax #advertisingtax New York Affiliate Voice California Affiliates Forum on ABestWeb Performance Marketing Alliance’s Campaign to Fight AB178 5 Star Affiliate Programs Amazon’s Line in the Sand Affiliate Taxation: Time to Fight Back Cal-Tax Analysis: Sales and Use Tax Nexus Dilemma Google’s Stance on the Sales Tax Issue [...]

  3. [...] How you can help re: #affiliatetax #advertisingtax New York Affiliate Voice California Affiliates Forum on ABestWeb Performance Marketing Alliance’s Campaign to Fight AB178 5 Star Affiliate Programs Amazon’s Line in the Sand Affiliate Taxation: Time to Fight Back Cal-Tax Analysis: Sales and Use Tax Nexus Dilemma Google’s Stance on the Sales Tax Issue Subscribe to TheSpew RSS Feed [...]

Leave A Comment