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  1. #1
    ABW Ambassador Amy Ely's Avatar
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    Advertising Tax - Updates & News on CO, MS, NM, MD, VA, VT, IL
    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
    Last edited by loxly; February 13th, 2010 at 01:02 AM. Reason: fixed typo in bill number

  2. #2
    Advocate mellie's Avatar
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    Maryland Bill number is incorrect in your list, it's actually SB824
    Melanie
    President - Affiliate Advocacy 2008 ShareaSale Performance Industry Advocate Award, 2009 Affiliate Summit Pinnacle Award - Affiliate Advocate
    Affiliate Advocacy
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  3. #3
    http and a telephoto
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    Quote 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.
    Deborah Carney
    TeamLoxly.com BookGoodies.com ABCsPlus.com

  4. #4
    ABW Ambassador Amy Ely's Avatar
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    Thanks for correcting

  5. #5
    ABW Ambassador delsol's Avatar
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    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/cli...e=1193_rr2.pdf

  6. #6
    ABW Ambassador Amy Ely's Avatar
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    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

  7. #7
    Advocate mellie's Avatar
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    Quote 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.
    Melanie
    President - Affiliate Advocacy 2008 ShareaSale Performance Industry Advocate Award, 2009 Affiliate Summit Pinnacle Award - Affiliate Advocate
    Affiliate Advocacy
    NYAffiliateVoice Seery Writing

  8. #8
    ...and a Pirate's heart. Convergence's Avatar
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    Quote 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/cli...e=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.
    Salty kisses, Sandy toes, and a Pirate's heart...

  9. #9
    ABW Ambassador delsol's Avatar
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    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 ".

  10. #10
    ...and a Pirate's heart. Convergence's Avatar
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    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...

  11. #11
    ABW Ambassador delsol's Avatar
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    Quote 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.p...69&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...

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