[curt]

This is the specific section that affects affiliates:

Sec. 1.1 on pages 9 & 10:

1.1. Beginning July 1, 2011, a retailer having a contract with a person located in this State under which the person, for a commission or other consideration based upon the sale of tangible personal property by the retailer, directly or indirectly refers potential customers to the retailer by a link on the person's Internet website. The provisions of this paragraph 1.1 shall apply only if the cumulative gross receipts from sales of tangible personal property by the retailer to customers who are referred to the retailer by all persons in this State under such contracts exceed $10,000 during the preceding 4 quarterly periods ending on the last day of March, June, September, and December.

[D.L. Wood]

As an Illinois resident and future affiliate marketer this is what I posted on Capitalfax.com and sent as an email and fax to Governor Quinn.

A plea to
The Honorable Patrick Quinn, Governor

On an affiliate forum site it states that Illinois has 9000 affiliate marketers.

Why would you want to lose 9000 badly needed incomes? If Boeing or Caterpillar had 9000 jobs in Illinois being affected by this tax you can bet there isn't a legislator that would have dreamed of presenting it.

It's not that Amazon and other big affiliates companies that have associates in Illinois can't track and possibly gather tax money. It’s not whether they should or not.

It's they don't want to and won't. These companies will just terminate 9000 associates as they have in the three states that have passed this type of tax law. With the states having lost revenue as a result.

Their businesses will have a small blip in revenue loss but easy to survive and go on. The 9000 associates - they may or may not survive. If they do they will have less income to report for the new income tax increase.

If the larger ones that have employees move out of the state as they have stated they must do to survive. The state will lose their income tax + the sales tax of these families spending their money to live in Illinois + any lost employees will be on unemployment + lost office rentals + lost property taxes. It doesn't seem logical to create a tax that will not generate income and will hurt 9000 families plus the state.

The Downside -
This tax will not generate income because the companies will not collect it. It will ultimately cost Illinois badly needed tax income.

It will stop anyone from starting this kind of business in Illinois in the future. Hurting future tax generation.

According to the Tax Foundation Illinois tax payers pay about $4346.00 per capita in yearly sales taxes. Let's look sales taxes if you had the worst case that all 9000 were total Illinois job & income losses and there was an average of three people in every family.
4346 X 3 people = $13,038 in taxes
13,038 x 9000 families = $117,342,000 in lost sales taxes
Even if half became true losses.
It would mean a loss of $58,671,000.00 in sales taxes with no increase. If only a third it would be $39,114,000.00. Add in lost income and property taxes and it's a loss Illinois can't afford.

The Only Upside -
The Illinois Government looks good to the uneducated public because it looks like it's doing a good thing. When really they are hurting the state with an eventual large loss of tax income.

If only Illinois would help these small businesses thrive and increase their income instead of hurt them. They would be glad to pay their fair share of added income tax at the higher rates now being talked about. Plus they would have more income to spend generating more sales taxes.

It's tough to ask these 9000 voters to pay an increased income tax when you take away the ability to pay it.

It has been stated that small businesses are the back bone of commerce. Please make it more hospitable to do business in Illinois for these people so more of them will continue in Illinois and more would want to start a business here.

Governor - Please VETO Senate Amendment 3 of HB 3659 (see Line 22 through 25, Sec. 1.1 on page 9.

[Carleenp]

Perry Marshall is offering to hand deliver messages to Gov. Quinn because Quinn apparently doesn't read his email. You can leave a message to be delivered in the comments section of his blog here:

Illinois will crush affiliate marketing if you don’t act now.

[stefanie]

Thanks for the Perry Marshall link!

This whole situation is so discouraging. I've lived in Illinois my entire life, and my whole family is there...and now I feel like I'm being forced out of my own state! In addition to my own complaints, I have enlisted my mom's help in ranting about it to everyone she knows and compelling them to action. There's no rage like a mother who thinks the state government is about to effectively force her daughter to move hours away from her in order to keep her business going!

If anyone else has friends and family members in Illinois, I hope they'll consider getting them to take action, too.

[D.L. Wood]

Another Thank You for the Marshall link. I reposted my comment there also.

Had a very good job and was let go 4 years ago. Took a good chunk of retirement money and started my own business in the same industry. The economy promptly went to hell and now have a business that has been stagnate for the last 4 years as in little or no sales.

I had been looking at A.M. as an alternative for several years. I looked at where I could or wanted to invest my time and effort. At the end of the year it finally came together and I bought some domains and have been working on building content. Now this - slapped down again. Seems kinda useless to put time in to develop something if you can't make any money with it.

[CPAPub]

This is an outrage. Any news?

[InfoScout]

Not yet.

[Carleenp]

Originally Posted by CPAPub

This is an outrage. Any news?

No, not yet. But at this point I think no news is good news. The longer the Governor takes, the more time people have to educate him, so maybe he will see that it is a bad law and will veto it.

[RebeccaMadiganPMA]

There is a meeting with the Governor some time in the next 2 weeks with some of the best industry advocates we have, and who have hired their own lobbyists: Tim Storm (FatWallet), Scott Kluth (Coupon Cabin), Craig Cassata (Mr. Rebates) and Brian Littleton (ShareASale). Not only are these guys affiliates, but they're employers, and jobs are really important to the Governor. Not for nothing, Wisconsin is courting them to move their businesses there (and Quinn heard about it). So, I'm cautiously optimistic, we have some great representation in the state.

Keep your letters and calls to the Governor coming, that will only help!

[Textbooks]

I am in IL resident and have voice my concern through the channels provided. Our company is not an IL company. My guess is that merchants can only turn off affiliates based on the physical location or documentation we provide, not based on where every employee is?

[InfoScout]

Man! I'm getting extremely antsy about this.

[Peoney]

Hi everyone, is there anymore news about the Illinois Affiliates? I wonder what happened. Are we still affiliates?

[Carleenp]

Originally Posted by Peoney

Hi everyone, is there anymore news about the Illinois Affiliates? I wonder what happened. Are we still affiliates?

The bill is still with the Governor. He hasn't signed it or vetoed it yet.

[charpaula]

I have been told if by March 11 the Governor does not veto the law will automatically go into effect. Does anyone know if this is correct?

[Carleenp]

Originally Posted by charpaula

I have been told if by March 11 the Governor does not veto the law will automatically go into effect. Does anyone know if this is correct?

That is correct.