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  1. #1
    ABW Ambassador isellstuff's Avatar
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    Affiliate Nexus Bill Introduced in Texas
    I didn't think this would happen, and the bill was introduced by a Democratic Legislature in my district...

    Austin news, sports, weather, Longhorns, business | Statesman.com

    The bill defines a taxable retailer as a business that brings in at least $10,000 a year or “enters into an agreement” with a Texas resident that receives a commission or “other consideration for directly or indirectly referring potential customers to the retailer by any means.”
    Last edited by isellstuff; February 15th, 2011 at 09:35 AM.
    Merchants, any data you provide to Google Shopping should also be in your affiliate network datafeed. More data means more sales!

  2. #2
    ABW Ambassador superCool's Avatar
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    that sucks like a bucket o' ticks. some of them will probably see that $269M tax bill from Amazon and think that's gonna be a regular thing. FREE MONEY

  3. #3
    ABW Ambassador isellstuff's Avatar
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    The bill that was introduced by Democratic Representative Elliot Naishtat is HB 1317. Full details can be viewed here:

    Texas Legislature Online - 82(R) History for HB 1317

    You can create an account on the above website and create an e-mail alert that will notify you whenever this bill's status changes.
    Last edited by isellstuff; February 15th, 2011 at 03:55 PM.
    Merchants, any data you provide to Google Shopping should also be in your affiliate network datafeed. More data means more sales!

  4. #4
    ABW Ambassador isellstuff's Avatar
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    Naishtat does a TV interview in support of the bill. He is using the "e-fairness" wording common in other state's campaigns:

    Naishtat bill stops e-retailer loophole | KXAN.com
    Merchants, any data you provide to Google Shopping should also be in your affiliate network datafeed. More data means more sales!

  5. #5
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    Never Mind...............
    Last edited by Witzer; February 16th, 2011 at 01:55 PM. Reason: Never Mind.......
    You must climb this mountain. There is no elevator. ---- Don't stick your finger in the liquid nitrogen.
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  6. #6
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    Have you notified the PMA? They have been very active in Illinois.
    [FONT="Comic Sans MS"][COLOR="Magenta"]Marie Sanders[/COLOR][/FONT]
    [URL="http://mariesandersonline.com"]htttp://www.mariesandersonline.com[/URL]

  7. #7
    ABW Ambassador isellstuff's Avatar
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    Merchants, any data you provide to Google Shopping should also be in your affiliate network datafeed. More data means more sales!

  8. #8
    Member InfoScout's Avatar
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    Good Luck Texas...
    [FONT="Comic Sans MS"][COLOR="Magenta"]Marie Sanders[/COLOR][/FONT]
    [URL="http://mariesandersonline.com"]htttp://www.mariesandersonline.com[/URL]

  9. #9
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    Texas is going crazy on Nexus bills. Not only is this one introduced, but they introduced a law that said if you are using servers based in a data center in Texas, you have Nexus. This is crazy given that Rackspace and Hostgator run their hosting out of Texas data centers. Link the Texas rules are here:

    Texas Nexus Law

  10. #10
    ...and a Pirate's heart. Convergence's Avatar
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    Quote Originally Posted by crfbusiness View Post
    Texas is going crazy on Nexus bills. Not only is this one introduced, but they introduced a law that said if you are using servers based in a data center in Texas, you have Nexus. This is crazy given that Rackspace and Hostgator run their hosting out of Texas data centers. Link the Texas rules are here:

    Texas Nexus Law
    It's a little confusing - here is an article found by Bobby131313 that appears to clear that up...

    Quote Originally Posted by bobby131313 View Post
    Salty kisses, Sandy toes, and a Pirate's heart...

  11. #11
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    Great clarification. I use a platform for my deal a day sites that is hosted on servers in Texas and got the notice from them originally. I don't do a ton of business to Texas so no need to worry but something I was a tad worried about.

  12. #12
    Full Member jtoskey's Avatar
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    HB1317 was ready for the first time today and referred to the TX House
    Ways and Means committee. The bill's author, Elliott Naishtat from
    Austin is NOT on this committee and will need both someone on the
    commitee to help sponsor it, as well has a sponsor in the senate. At
    this point, our company feels pretty good about the legislation dying
    pretty quickly but will continue to update the group here if we hear
    of any movement.

    As I'm sure you all have done, reach out to your local representative
    to help them understand the issue at hand and how it negatively will
    impact your TX business.
    Last edited by MichaelColey; March 11th, 2011 at 04:33 PM. Reason: Corrected Bill#

  13. #13
    Moderator MichaelColey's Avatar
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    Emails sent to my representatives.

    If you don't know who your representatives are or how to contact them, you can find them here:

    Who Represents Me--Home

    FWIW, it's your state representatives (not your US ones) that can make a difference on this.
    Michael Coley
    Amazing-Bargains.com
     Affiliate Tips | Merchant Best Practices | Affiliate Friendly? | Couponing | CPA Networks? | ABW Tips | Activating Affiliates
    "Education is the most powerful weapon which you can use to change the world." Nelson Mandela

  14. #14
    ABW Ambassador La_Valette's Avatar
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    Sent an email to my state rep too.

    What a ridiculous situation. The way its going, we're going to have to all move outside the USA to do business with US merchants...
    Kids, you tried your best and you failed miserably. The lesson is, never try. -- Homer Simpson

  15. #15
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    I just received an email from Overstock.com warning me about the Texas Nexus bill HB 1317 and how they will have to sever relationships with their Texas affiliates if the bill passes the Texas legislature.

  16. #16
    Newbie Omni Mike's Avatar
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    Thomas Paine said it best "That government is best which governs least."

    It's horrible to see these laws popping up all over the place. It's just a slap in the face.

    We'll be trying to maintain all of our relationships with these states, but I wish all merchants who aren't and all affected affiliates the best of luck.

  17. #17
    ABW Ambassador La_Valette's Avatar
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    It is abominable that these kinds of laws would get traction in Texas of all places, a state that always prided itself on being business-friendly.

    In this article:

    Rick Perry: Amazon decision wasn't the right one | J.P. Freire | Beltway Confidential | Washington Examiner

    ... the governor mentioned that the historical standard for sales taxes in TX was always having a physical storefront (not just building - actual shop storefront needed). The bills being proposed to define nexus as having an affiliate or a server are completely at odds with that.
    Kids, you tried your best and you failed miserably. The lesson is, never try. -- Homer Simpson

  18. #18
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    I think I just heard this bill passed. Does that mean all merchants will kick out the Texas affiliates or is it up to each merchant?

  19. #19
    ABW Ambassador isellstuff's Avatar
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    Quote Originally Posted by porkchop View Post
    I think I just heard this bill passed. Does that mean all merchants will kick out the Texas affiliates or is it up to each merchant?
    A different bill by Representative Otto made it out of committee and moved on to the full House of Representatives for a vote. This bill does not include affiliate nexus language, but does target distribution centers and businesses that sell digital goods from servers in Texas.

    If a bill passes the House, it goes on the Senate, then to the Governor before being law.

    I've noticed that the press is getting confused with the Amazon distribution center. They seem to think that closure of the distribution center = firing of affiliates. Probably because Amazon called the distribution center an "affiliate" of theirs.
    Last edited by isellstuff; April 8th, 2011 at 08:40 AM.
    Merchants, any data you provide to Google Shopping should also be in your affiliate network datafeed. More data means more sales!

  20. #20
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    Thumbs down
    The bill that made it's way through the Means and Ways committee was HB 2403. It is now headed to the house to be voted on.

    I am guessing this will pass by October but the way I read it is it will not consider affiliate marketers a "nexus" so we won't get the boot from the merchants. Correct me if you read this law differently.

    The bill is outlined here

    Texas Legislature Online - 82(R) Text for HB 2403

    The bad part is it will hurt our large web server companies because if a company is using a server in Texas, that is considered a "nexus" to the state and sales tax must be collected... WHAT A SHAM! Large web server companies will be out of business in no time!

    The other bill that is still pending in Ways and Means (HB 1317) is the one that will hurt affiliate marketers in Texas because it clearly defines affiliate marketers as a Nexus.

  21. #21
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    Two observations (IANAL) from a quick read of HB 2403:
    • First, the main or most significant change in the law seems to be the notion that if a company uses a web server located in Texas ("utilizes a website on a server in this state from which digital goods are sold or delivered"), there is nexus and the company must collect sales tax. The language seems to be limited to "digital goods," but any retailers (of intangible or tangible goods) currently using HostGator, RackSpace, ThePlanet, or any other servers located in Texas (or using any "cloud-based" hosting solution that includes any servers in Texas) should already be thinking about relocating to solutions that don't include any Texas servers. This will flush tens or hundreds of millions of dollars of hosting fees and dedicated-server leasing fees from Texas to other states (without increasing sales-tax collections at all).
    • Second, there doesn't seem to be any new "advertising-nexus" language in the law, but it does contain existing language that clearly violates the Quill decision: according to this existing "advertising-nexus" language in the law, nexus exists if a retailer:
      "engages in regular or systematic solicitation of sales of taxable items in this state by the distribution of catalogs, periodicals, advertising flyers, or other advertising, by means of print, radio, or television media, or by mail, telegraphy, telephone, computer data base, cable, optic, microwave, or other communication system for the purpose of effecting sales of taxable items;"
    Last edited by markwelch; April 11th, 2011 at 01:13 AM.

  22. #22
    ABW Ambassador La_Valette's Avatar
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    Good write up on the current status of the Texas legislation in the Statesman this weekend:

    Affiliate marketers may be collateral damage in Amazon's Texas sales tax fight
    Kids, you tried your best and you failed miserably. The lesson is, never try. -- Homer Simpson

  23. #23
    OPM and Moderator Chuck Hamrick's Avatar
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    In move tied to online debate, Texas House OKs bill to close sales tax loopholes
    The business "maintains, occupies, or uses in this state permanently, temporarily, directly, or indirectly or through a subsidiary or agent by whatever name, an office, distribution center, sales or sample room or place, warehouse, storage place, or any other physical location where business is conducted."
    That to me doesn't demote an online affiliate relationship. Taken from: In move tied to online debate, Texas House OKs bill to close sales tax loopholes
    Last edited by Chuck Hamrick; April 27th, 2011 at 02:02 PM.

  24. #24
    ABW Ambassador isellstuff's Avatar
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    Quote Originally Posted by Chuck Hamrick View Post
    That to me doesn't demote an online affiliate relationship.
    It isn't. This a different bill that goes after the Amazon distribution center. The press gets confused because Amazon has publicly stated that the Texas distribution center was an "affiliate" of theirs (and thus did not establish nexus)

    The affiliate nexus bill has not made it out of committee.
    Merchants, any data you provide to Google Shopping should also be in your affiliate network datafeed. More data means more sales!

  25. #25
    ABW Ambassador La_Valette's Avatar
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    Quote Originally Posted by isellstuff View Post
    The affiliate nexus bill has not made it out of committee.
    Not yet... the exact quote from the article is "Naishtat's bill has not yet been voted on by the House Ways and Means Committee."
    Kids, you tried your best and you failed miserably. The lesson is, never try. -- Homer Simpson

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