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  1. #1
    ABW Ambassador Stephanie Lichtenstein's Avatar
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    Exclamation California Affiliates: Urgent Action Needed on ad tax fight
    Hi everyone,

    The California Assembly will vote on the ad tax bill (ABX8 8) this Monday (2/22). We need Californians to reach out to 10 swing Democrats we believe we can win over.

    If this ad tax is passed in California, out-of-state merchants will terminate their affiliate programs, as they have done in New York, North Carolina and Rhode Island. If you are a Nevada affiliate marketer, we need your help to beat this law. We beat this law in other states – but only with participation from a large number of affiliates.

    Getting involved is very simple – yet critically important. We have put together a letter template, talking points and contact information for 10 key legislators we need to convince. Get involved here today!
    @MicroSteph | Stephanie Lichtenstein
    President of Micro Media Marketing
    Outsourced Social Media Management
    Get Connected: LinkedIn | Twitter | Facebook | AIM: AffiliateLady | Skype: StephanieLichtenstein

  2. #2
    ABW Ambassador affninja's Avatar
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    Stephanie, thanks for posting.

    Just got notice from Overstock.com that they WILL terminate CA affiliates should this bill pass. Hopefully this will provide additional ammunition to convince legislators:

    Dear Affiliate:


    Overstock.com values your advertising efforts, and hopes to be in a position to continue our business connection for years to come. However, we are writing to inform you the California Senate has just voted on a bill that contains a provision similar to that attempted last year which may affect the business we do.

    Similar to last year?s measure, which was vetoed by the Governor, this year?s bill is modeled on a bill first passed in New York. The legislation attempts to establish responsibility for collection of sales tax for out-of-state retailers if those out-of-state retailers use California-based affiliate advertisers.

    While we hope it does not become law, since the California bill may be moving quickly, we may not have much advance notice before the law is implemented, and therefore this letter is notice that if the law passes, termination of services could occur without further notice to you. We will, however, try to provide advance notice if circumstances allow.


    Again, Overstock.com values your advertising efforts and is hopeful that, like other states recently examining and rejecting this legislation, California will again see that this bill is bad for business and bad for California.


    Respectfully,


    Jonathan E. Johnson III
    President Overstock.com,Inc
    Your Ad Here.

  3. #3
    Affiliate Manager MusiciansFriend's Avatar
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    Could affiliates just Inc. up in a sales tax free state (like Oregon) with a P.O. box to avoid this?

  4. #4
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    MusiciansFriend asked: > "Could affiliates just Inc. up in a sales tax free state (like Oregon) with a P.O. box to avoid this?" <

    No, no, no! Search for "entity games" or "incorporation" to see the many discussion threads about this in the past 18 months.

    A business is a "resident" of any state where its employees perform work.

  5. #5
    Analytics Dude Kevin's Avatar
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    And the affiliate "moving" their address would actually put the merchant in jeopardy, as well as the affiliate.

    Merchants need to be very careful with this and all tax legislation.

    Lawyer up.
    Kevin Webster
    twitter: levelanalytics

    Kayak Fishing
    Web Analytics and Affiliate Marketing

  6. #6
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    ... not to mention

    You would have to pay state income tax in your state of incorporation;
    You would have to register as a foreign corporation in your state of residence where you are actually doing business; and
    The networks might kick you out for trying to defraud their merchants.

    If an affiliate were to do such a thing, and a merchant buys into it, and then gets hit for payment of substantial taxes, penalties and interest for not collecting taxes on sales they thought were through only out-of-state affiliates, they will sue that affiliate for all of their damages.
    Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
    "If you don't have time to do it right, when will you have time to do it over?" -John Wooden;
    "Raj, there’s no place for truth on the internet." -Howard Wolowitz[/SIZE]

  7. #7
    Newbie PlatinumPi4u's Avatar
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    Do a google search for amazon tax california

    and you will see an open letter to forward and fax.
    We must call and fax.

    Or else its GoodBye, just like NC, etc.....

  8. #8
    ABW Ambassador La_Valette's Avatar
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    The California Assembly will vote on the ad tax bill (ABX8 8) this Monday (2/22)
    So what was the outcome?
    Kids, you tried your best and you failed miserably. The lesson is, never try. -- Homer Simpson

  9. #9
    Advocate mellie's Avatar
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    Quote Originally Posted by La_Valette
    So what was the outcome?
    It was sent to Rules committee which is meeting today.

    ( I have summarized all the latest updates on legislation on Affiliate Advocacy - http://affiliateadvocacy.com/2010/ne...ation-updates/ )
    Melanie
    President - Affiliate Advocacy 2008 ShareaSale Performance Industry Advocate Award, 2009 Affiliate Summit Pinnacle Award - Affiliate Advocate
    Affiliate Advocacy
    NYAffiliateVoice Seery Writing

  10. #10
    Affiliate Manager MusiciansFriend's Avatar
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    Looks like Cali affiliates live to fight another day… from the SJ Merc News:

    “…Discussion of more controversial proposals, including a $1.8 billion fuel tax overhaul and a plan to force out-of-state retailers like Amazon.com collect sales tax on online purchases, will continue this week. They were pulled from final approval Monday amid concerns from the governor's office…”

  11. #11
    ABW Ambassador
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    What is the latest on this?

  12. #12
    ABW Ambassador Stephanie Lichtenstein's Avatar
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    Quote Originally Posted by redtagdeals
    What is the latest on this?
    Hi redtagdeals,

    I don't have an update at the moment but I will post when I do.

    Thank you for your support against the ad tax!
    @MicroSteph | Stephanie Lichtenstein
    President of Micro Media Marketing
    Outsourced Social Media Management
    Get Connected: LinkedIn | Twitter | Facebook | AIM: AffiliateLady | Skype: StephanieLichtenstein

  13. #13
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    what was the outcome of this?

  14. #14
    Affiliate Manager
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    It is still out there not sure if it has passed both houses but it is not dead yet.

  15. #15
    Newbie PlatinumPi4u's Avatar
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    Lets kill it with fire!

    For what its worth, Alex Jones has a bunch of info on this on his website, just search his name.

  16. #16
    Affiliate Manager
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    What's the situation with overseas merchants?
    Curious to know what the situation is for merchants domiciled in tax-free countries such as Panama. No tax is paid on foreign income.

    Sydney

  17. #17
    ABW Ambassador 2busy's Avatar
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    A California tax law would only affect those affiliates who live in California. This thread is over a year old, I'm sure you would have heard if it had any affect on affiliates in Pakistan by now.

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