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November 18th, 2010, 09:40 PM #1
Jerry Brown as governor and Affiliate nexus law in CA.
- Join Date
- September 17th, 2007
No matter what else I felt about the November election, I was desperately praying for Meg Whitman to win governorship because I thought she would never sign a nexus law hurting online commerce in CA. But she lost, and Arnold makes way for Jerry Brown come Jan 2011.
This could be a complete game changer for nexus laws in CA. What are the chances of getting out of the next few years ( or months?) without a problem law?
My only other hope was that the Amazon/NY case would make nexus laws unconstitutional in the meantime, but it doesn't look like the news is great on that front either.
I've been wanting to invest more time and money into my sites, but this sword hanging on our heads and threatening to drop anytime makes that much harder.
What are your thoughts on the new reality for CA affiliates?
November 18th, 2010, 10:35 PM #2
I have been trying for quite awhile to write something here that would not get immediately blown up by the first moderator to see it, given the general prohibition here against political commentary. Suffice it to say, and hopefully this is not also saying too much, saving affiliate marketing in California is not worth four years of whitman. (This from someone who has been a full-time affiliate marketer in California for close to 10 years.)
In Jerry Brown's eight years as Governor, Californians saw their tax burden reduced by more than $16 Billion. He indexed the personal income tax, eliminated the business inventory tax and offered energy tax credits, as well as other tax-saving measures. He made government work despite the monumental decrease in tax revenue upon the passage of Proposition 13. The newly-elected Jerry Brown has pledged NO NEW TAXES WITHOUT VOTER APPROVAL. Will Californians VOTE to add any form of an internet tax? Never!
As to the Amazon case: WHATEVER happens in New York courts will have no LEGAL effect in California or in any other state. Should a State appellate court declare the New York law and its underlying concepts unconstitutional, that could have an indirect influence on legislators in other state who may feel that it is the wrong course to pursue such a law in their state, given that it may at some point meet the same fate, with the slight possibility of the state being required, in some form or another, to return tax revenues at a later point in time. But, what one state court does has no force or effect over the laws of another state.
The ONLY court that can make a determination binding on all states, is the US Supreme Court. As I explained in this thread (see post #4), such a determination is years away. Given that the Amazon case will now involve months, if not years, of discovery, and possibly trial, before it sees the light of another appellate court, it is at least four to five years until the issue is likely to reach the US Supreme Court.
Last edited by Phil Kaufman aka AffiliateHound; November 18th, 2010 at 10:40 PM. Reason: typo
November 18th, 2010, 10:49 PM #3
You must climb this mountain. There is no elevator. ---- Don't stick your finger in the liquid nitrogen.
- Join Date
- November 14th, 2005
- Chapel Hill, NC
November 19th, 2010, 12:22 PM #4
- Join Date
- September 17th, 2007
1) Ideal situation is a continuation of the status quo (no internet tax without real physical presence), and with some certainty for atleast a few years.
2) Less ideal, but okay is internet sales getting taxed, but affiliates being left out of the equation.
3) worst case scenario, affiliates constituting nexus and retailers terminating affiliates.
Remember also that this is not billed as "new taxes" but "better enforcement of existing tax laws".
With Arnold out, my fear is that we are more likely to be looking at 2 or 3 sometime soon, with some high stakes game of Chicken played between retailers like Amazon and CA. Tell me it ain't so.
The first time this provision gets passed again by the legislature and Jerry Brown vetoes it like Arnold with an unequivocal statement, I'd rest easier.
PS: affiliatehound or others: political commentary is perfectly fine if useful to the issue on hand which is affiliate nexus laws.
Last edited by emuflies; November 19th, 2010 at 12:32 PM.
November 19th, 2010, 12:39 PM #5
November 20th, 2010, 12:28 AM #6
Let's not stray too far from nexus law. Political discussion relevant to affiliate marketing is perfectly fine on ABW. Political argument just offends and distracts from the important discussion.
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