There are a couple of initiatives currently ongoing that offer you a chance to help out on the issue of the #AdvertisingTax. The efforts of the legislature in various States are sure to increase with the upcoming New Year – and we need your help.
What is the Advertising Tax?
Many State governments are attempting to use the existence of an Affiliate Program as a defining criteria for a retailer having “Nexus” in that State. Once Nexus is determined, States can force those retailers to collect
sales tax (at a minimum). Instead, retailers are dropping affiliates from their programs in those states.
How can I help and get involved?
Currently there are two organizations that are working for this industry on this issue. We all need your help as there is strength in numbers much more than any individual effort.
We recommend the following:
Upcoming Conference Call from Affiliate Advocacy
Title: “Affiliate Advocacy – Prepare for Nexus Legislation”
Date: Tuesday, December 8, 2009
Time: 12:30 PM – 1:30 PM EST
Register now by clicking the link below:
https://www2.gotomeeting.com/register/875894226
And:
Tell your story and register your support with the Performance Marketing Alliance (PMA)
http://performancemarketingassociation.com/advocateform.html
Our industry needs group effort and collaboration on this, and we hope that you will join us in this fight.
-Brian Littleton
-President/CEO ShareASale
Melanie Seery says
November 24, 2009 at 2:10 pmBrian, thank you for all you and SAS do to educate and to help identify solutions. We definitely all need to continue to work together.
Stu Cluff says
November 24, 2009 at 4:53 pmCan we/I copy your original post and place it on networking sites and forums to increase the coverage. FYI: Just filed my “Tax Revenue form” today in New York from 3000 miles away in Washington State. Doing quarterly tax returns for every state will kill any margins we would earn. Plus other countries would chime in and our tax forms will be in other exchanges as well. We need to stop this!
Lisa Picarille says
November 25, 2009 at 7:54 ambrian,
thanks for putting this out there. it’s important for people to get involved and educated even if the advertising tax has not come to their state yet (chances are high that it will very soon). if we, as an industry, can get ahead of this proposed legislation we can combat efforts by lawmakers that threaten the affiliate space.
thanks again for your continued efforts.
Cram Jam says
January 4, 2010 at 11:56 amThis is absurd – Again it’s government spending to much cash and trying to pry more from the already taxed to death public – I can say that this is only the beginning and there will be a lot more fights in the future, they won’t stop until we have nothing left!
I’ll say this, If one of my valuable accounts is dropped, which provides most of my living, and is dropped because of my state adding this type of Nexus, which causes my affiliate programs to cancel my account, you bet your ass, I’ll be the first to sue or I’ll be popping a tent on their freaking lawn!!! Enough is enough!! Spend more time worrying about the freaking drug smuggling in this freaking country — Billions of dollars sitting there tax free!!
Luis Antonio says
January 19, 2010 at 7:50 pmIn Puerto Rico, a Commonwealth of the USA, we already have a everything 7% tax. What we do is we pay it out of the profits. If an affiliate programs produces 7% or less, we can’t participate.
If you analyze that a 20% commission when advertising and other expenses are added could easily give you 10% or less in profits, this is a matter of financial thoughts.
John G says
January 23, 2010 at 11:52 amAgain, this type of event tied to the new FTC regulations pertaining to marketing illustrates the trap door is gradually being opened beneath our feet by an evermore controlling government hellbent on cutting off its nose to spite its face.
What is the update and what are the states that are actively imposing this anti-affiliate legislation?
Chris says
March 1, 2010 at 10:27 amIt has struck Colorado!
Sunny says
March 10, 2010 at 1:46 pmI wish I had read this before today. On Monday, Amazon canceled over 4200 affiliate accounts in Colorado. This has virtually ended one arm of my internet marketing business. There was no warning from either the state legislators, or Amazon.
This is a devastating blow to a senior citizen supplementing social security.
Al says
March 26, 2010 at 12:23 amCorrupt politicians (which is all of them) really feel our hard earned money is theirs to do with as they please. I am so sick of the ever-increasing government control that I don’t know what to do anymore. The harder I work the more they take! We all love this country, but hate our government. There must be something that WE THE PEOPLE can do to take back control of our government before our government takes complete total (totalitarian) control of our money, property, thoughts, and emotions. God save the USA from the corrupt politicians.
Donald Urquhart says
April 2, 2010 at 12:53 amThe USA leaders have chastised Australia for wanting to remove foul and obscene child pornography from coming into Australia from the internet, yet they quite happily want to tax people for promoting a product over the internet, simply because the affiliate lives in a state of the USA.
Where is free speech in all this?
A very naive view perhaps.
Perhaps more easily, don’t allow affiliates to exist in the USA! Let countries like Australia reap the affiliate rewards :)
Manuel says
April 18, 2010 at 10:20 amWe have a free rights to do anything good for us. Always and when don’t affect other people negativelly. The economy is bad in this moment and we need to do anything to bring the best to our family. This is great opportunity develop tools by own performance with our abbilities to show other people that we can do the best. Affiliates program #1 option in the World.
Rob says
May 23, 2010 at 9:50 amDon’t just criticize politicians and policy makers – do something about it!
I took the time to not only learn about the bill that almost got passed here in Virginia, but also called my state senators and house members (almost all of them). I then drove to the state capital and testified before them.
Join the PMA (link above) and get active in your state and others if possible.
Those against the NEXUS laws have politicians on our side (I spoke with and met with some) and the opposition has their set of politicians on their side.
Who’s really pushing to get these NEXUS laws passed? The local business people who never extended their reach to the web. I heard their testimony and they made it out to seem that affiliates are the people who killed their businesses.
Enough ranting….just join the PMA, get active, and testify – there were only a handful of us who testified in Virginia – get active!
Wendy Owen says
May 30, 2010 at 12:29 amSounds like Rob is right and it is the dinosaurs who are supporting this tax. The fact is, people prefer to shop online these days and a few local businesses are,’t going to stop this growing trend.
I don’t live in the US but am prepared to support affiliates who do. The web is global and we should support each other.
Cheers
Wendy
Lawrence Weatherall says
June 14, 2010 at 10:29 pmHi I am new to this but I will do what I can
Lawrence Weatherall
JadeDragon@innovativepassiveincome says
June 27, 2010 at 6:12 amAnother solution is to set up your affiliate accounts from offshore (or at least in a no tax state). No one says you have to act personally, act corporately or as a trust or whatever from the right spot. These taxes are stupid and can be beat.
Creative Gift Ideas says
July 28, 2010 at 8:49 amThanks for this information. It is important for people to get involved and educated. It will come to every state eventually if passed. We are already being taxed enough for sure.
SFaith says
September 8, 2010 at 1:36 pmI really hate this. I wish there was a way for us to stop these politicians from doing us all over like this.