[Amy Ely]

Hi Everyone.

We're planning to email this out to all of our buy.at affilaites next week, but I wanted to share the information ASAP.

Last week in Richmond, the Hearing room was lined with local retailers claiming that affiliate advertisers were putting them out of businesses. Without affiliate advertisers there to stand up for their rights, the Advertising Tax passed out of Committee. See the Washington Post Story here.

Below is a list of the bills we are now facing. If you operate in any of these states, please get involved.

Active Bills:
• Colorado HB 1193 (according to my sources, the bill is still active)
• Mississippi SB 2927
• New Mexico HB 50
• Maryland SB824
• Virginia SB 660
• Vermont HB 661
• Illinois SB3353

In addition we expect legislation in Oklahoma, Nevada and California.

Also, Rhode Island HB 7071 seeks to repeal the Advertising Tax that passed last year – please support this measure.

Questions? Feel free to contact me.

Thanks,
Amy

[mellie]

Maryland Bill number is incorrect in your list, it's actually SB824

[loxly]

Originally Posted by mellie

Maryland Bill number is incorrect in your list, it's actually SB824

Fixed it. The link was right, but the number showing was wrong.

[Amy Ely]

Thanks for correcting

[delsol]

Amy the bill in Colorado (HB-1193) has been greatly modifed. It does not concern affiliates anymore. It might concern some merchants:

http://www.leg.state.co.us/clics/clics2010a/csl.nsf/fsbillcont3/B30F574193882B4B872576A80026BE0C?open&file=1193_rr2.pdf

[Amy Ely]

Hi delsol,

As we read it, the bill will open up online retailers to a Colorado audit if they use affiliates. Since online retailers still consider this bill problematic, it may still impact their relationships with affiliates.

-Amy

[mellie]

Originally Posted by Amy Ely

Hi delsol,

As we read it, the bill will open up online retailers to a Colorado audit if they use affiliates. Since online retailers still consider this bill problematic, it may still impact their relationships with affiliates.

-Amy

Although many will not want to hear this opinion, many others read it the same way.

There was another thread where we spoke about interpreting any of these bills. Merchants need to retain counsel of qualified accountant or sales tax attorney and not rely on anything said by anyone including any organization or individual (myself included) legislators, lobbyists.

[Convergence]

Originally Posted by delsol

Amy the bill in Colorado (HB-1193) has been greatly modifed. It does not concern affiliates anymore. It might concern some merchants:

http://www.leg.state.co.us/clics/clics2010a/csl.nsf/fsbillcont3/B30F574193882B4B872576A80026BE0C?open&file=1193_rr2.pdf

Read it carefully -

The soliciting, either by direct representatives, indirect representatives, manufacturers' agents, or by distribution of catalogues or other advertising, or by use of any communication media, or by use of the newspaper, radio, or television advertising media, or by any other means whatsoever, of business from persons residing in this state and by reason thereof receiving orders from, or selling or leasing tangible personal property to, such persons residing in this state for use, consumption, distribution, and storage for use or consumption in this state.

It was simply reworded...

Also, every advertising agency can be considered a nexus - that includes newspapers, magazines, and even Google which has an office in Boulder, CO.

[delsol]

Without being a lawyer, simply having a web site appear to be nexus ("any communication media" line 13).

I think they ignored the concept of nexus and are really saying: "When you sell to a Colorado resident, you have to help collect sales taxes for Colorado ".

[Convergence]

Personally I think if a merchant like Amazon wanted to challenge the bill in court, as it is currently written, Colorado is going to spend more in legal fees than they will ever collect in tax revenue.

This time I'm rooting for the lawyers...

[delsol]

Originally Posted by Convergence

Personally I think if a merchant like Amazon wanted to challenge the bill in court, as it is currently written, Colorado is going to spend more in legal fees than they will ever collect in tax revenue.

This time I'm rooting for the lawyers...

I'm in 100% agreement. I tried to convey this to a few of my reps:
http://forum.abestweb.com/showpost.php?p=998569&postcount=3

Now the merchants and/or a large merchant should unite and go to court. They will probably lose the local court battles but will probably win at the US Supreme Court.

Or they could all contribute to a legal fees fund and just challenge that state law by not complying as if nothing happened.

In any case, keeping or letting go of their affiliates will not change a thing.

Note: States have huge budget gaps. Creative financial structures have enabled them to kick the can(s) (pension funds..etc..) for the last 10 years. These budget gaps will seriously grow in the next few years. This irrational behavior from our politicians is worrisome. What will they do then? We need to replace them with more reasonable people...