Results 1 to 7 of 7
  1. #1
    Member
    Join Date
    January 18th, 2005
    Location
    Upstate SC
    Posts
    173
    South Carolina Affiliates - Nexus Tax Hearing Tomorrow
    If you are an affiliate in SC, there is a hearing tomorrow morning in Columbia for a sub-committee (TRAC) to consider the introduction of the Affiliate Nexus tax to the legislature next year.

    It will be easier to stop this becoming law now, as we only need to educate the subcommittee of why this is a bad idea. If it gets introduced, then we have to try to educate the entire legislature next year, which of course is many more people.

    This is probably our best chance to keep this law off the books in our state. The more faces we have at this hearing, the better our chances.

    There is a Google group for more info:
    http://groups.google.com/group/pma-s...dvertising-tax

    Who are the SC affiliates here?
    [url=http://www.drastictactics.com/]Drastic Tactics[/url] - Performance Marketing Since 1998

  2. #2
    Newbie
    Join Date
    July 13th, 2008
    Posts
    2
    How To Create an LLC in Delaware
    Someone should come up with a WSO. "How To Create an LLC in Delaware".

    It looks like I will have to do that very soon. I've already got a street address mailbox through Earthclassmail.

    Anyway, I just don't see how the smaller merchants will be able to calculate sales taxes via affiliates. In some cases, the sales tax itself might be higher than the affiliate commission.

    I'd rather forfeit my sale all together if the customer is in the same State.

  3. #3
    Newbie
    Join Date
    July 13th, 2008
    Posts
    2
    Post
    I guess it's too late for SC, but for anyone who trying to explain to laymen why this is a bad idea please don't use the word website when talking about affiliates.

    The average Joe thinks of an affiliate website as a site that accepts credit cards like a store front.

    Most affiliates have small websites that are more like blogs. Call them "bloggers". That way a laymen can understand these aren't merchant websites.

  4. #4
    Member
    Join Date
    January 18th, 2005
    Location
    Upstate SC
    Posts
    173
    >Someone should come up with a WSO. "How To Create an LLC in Delaware".
    Incorporating out of state is not as simple as you think. Not only that, any presence you have in a state is generally going to be considered nexus. HQ in a state? Work done in a state? Doesn't matter if you inc. in Delaware you still have nexus in states where you physically work or have your HQ.

    There probably is a way around it if it becomes law, but I'm more interested in stopping it now before I need to look for a work around or think about moving.

    >anyone who trying to explain to laymen why this is a bad idea please don't use the word website
    Actually the TRAC commission were very clued up, especially after Rebecca from the PMA gave her testimony and answered all of their questions. Light bulbs were going on with these guys. They may not have fully understood our business, but they grasped the basics enough to understand why nexus law is bad for Internet businesses in their state who make revenue from performance advertising.

    I agree we shouldn't make things more complex than necessary, but oversimplifying can cause similar problems.
    Last edited by Drastic; August 14th, 2010 at 09:13 AM.
    [url=http://www.drastictactics.com/]Drastic Tactics[/url] - Performance Marketing Since 1998

  5. #5
    Member
    Join Date
    January 18th, 2005
    Location
    Upstate SC
    Posts
    173
    The outcome of this hearing was very, very positive. We had a one-two punch of first Rebecca from the PMA very professionally and successfully explaining our business and why nexus law was a bad idea, then secondly with 2 affiliates, myself included, giving our own testimony.

    After everyone was heard, the commission talked about possible changes, including "tweaking" the nexus section or removing it altogether. Some members of the commission were obviously convinced that it was a bad idea. The commission will meet again to consider and vote on changes to their proposal for the legislature. I think we have a good chance nexus will be removed. If not, we gave it our best shot.

    We had the PMA, several affiliates, an affiliate program manager, and local political advisers for the PMA were there for our cause.

    I want to thank Rebecca Madigan from the PMA for doing such a great job, and for coordinating everyone and everything. Had she not been involved, not nearly as much would have happened, probably none of it. She grouped us up, told us how to respond, encouraged us, spoke for us, and had advice and help from local political advisers in place. These advisers also set up interviews with 2 of the 3 most read papers in our state. Two press members interviewed both Rebecca and myself on the issue.

    I know there is some negative history here at abw with the pma, and I am here to tell you that is in the past, is not relative to our moving forward and I think it is in everyone's best interest to let past disagreements stay in the past.

    If you choose to distance yourself from and not work with the pma for whatever personal reasons which have no real business consequence, you are doing yourself, your business, your state, your nation and your fellow affiliates a disservice.

    For the record, I am not currently a member of the pma, but that will be changing soon.

    I don't know if anyone here is interested in following this issue in SC, it would be great to hear from you if so.
    [url=http://www.drastictactics.com/]Drastic Tactics[/url] - Performance Marketing Since 1998

  6. #6
    ABW Ambassador beachcom's Avatar
    Join Date
    May 11th, 2006
    Location
    Myrtle Beach SC
    Posts
    723
    Very much interested here. Hate to see all my hard work for naught.

  7. #7
    Member
    Join Date
    January 18th, 2005
    Location
    Upstate SC
    Posts
    173
    Here is our Google Group for following this issue:

    http://groups.google.com/group/pma-s...dvertising-tax
    [url=http://www.drastictactics.com/]Drastic Tactics[/url] - Performance Marketing Since 1998

  8. Newsletter Signup

+ Reply to Thread

Similar Threads

  1. Schaaf-PartnerCentric Surveys California Affiliates on Nexus Tax Issue
    By wsisson in forum California Affiliate Tax
    Replies: 2
    Last Post: August 15th, 2011, 12:58 PM
  2. Deluxe supports affiliates in states affected by the Tax Nexus
    By Andy Rodriguez in forum Deluxe Business Products & Services
    Replies: 0
    Last Post: July 1st, 2011, 02:40 PM
  3. San Diego Affiliates - Hearing Tomorrow
    By Stephanie Lichtenstein in forum California Affiliate Tax
    Replies: 0
    Last Post: February 17th, 2010, 06:24 PM
  4. North Carolina tax agency's interpretation of Advertising-Nexus Tax Law?
    By markwelch in forum North Carolina Affiliate Tax
    Replies: 2
    Last Post: July 7th, 2009, 05:28 PM
  5. Hi from South Carolina
    By papajohn56 in forum Introduce Yourself
    Replies: 2
    Last Post: June 13th, 2008, 07:06 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •