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February 12th, 2010, 05:42 PM #1Advertising Tax - Updates & News on CO, MS, NM, MD, VA, VT, IL
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.
• 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.
February 12th, 2010, 08:27 PM #2
February 13th, 2010, 01:03 AM #3
Originally Posted by mellieDeborah Carney
- Join Date
- January 18th, 2005
TeamLoxly.com BookGoodies.com ABCsPlus.com
February 13th, 2010, 03:51 PM #4
February 13th, 2010, 11:05 PM #5
February 16th, 2010, 09:56 AM #6
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.
February 16th, 2010, 10:46 AM #7Originally Posted by Amy Ely
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.
February 16th, 2010, 11:29 AM #8Originally Posted by delsol
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.
Also, every advertising agency can be considered a nexus - that includes newspapers, magazines, and even Google which has an office in Boulder, CO.Salty kisses, Sandy toes, and a Pirate's heart...
February 16th, 2010, 04:57 PM #9
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 ".
February 16th, 2010, 05:05 PM #10
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...Salty kisses, Sandy toes, and a Pirate's heart...
February 16th, 2010, 05:12 PM #11Originally Posted by Convergence
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...
By techstyled in forum Tennessee Affiliate TaxReplies: 17Last Post: October 7th, 2011, 05:30 PM
By markwelch in forum Rhode Island Affiliate TaxReplies: 8Last Post: July 24th, 2009, 09:19 AM
By markwelch in forum North Carolina Affiliate TaxReplies: 2Last Post: July 7th, 2009, 05:28 PM