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  1. #1
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    CA Affiliate-Nexus Tax Appears to be Done Deal
    The LA Times is reporting that the Gov's new budget plan has sufficient legislative support to pass.

    It includes the Affiliate-Nexus tax.

    The proposal, which Democrats said they would pass as soon as Tuesday, does not include the renewed tax hikes that the governor had been pushing to put before voters. But it does contain some charges that Democrats believe they can legally raise without GOP support. Car owners, for example, would pay $12 more per year to register their vehicles. Residents of wildfire-prone zones would pay a new fee for state firefighting efforts. Other revenue would come from forcing online retailers such as Amazon.com to collect sales tax on purchases by California residents.
    Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
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  2. #2
    Moderator MichaelColey's Avatar
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    Unbelievable that they promote a lie. They'll never collect a penny from Amazon.com. Amazon.com will just do what they've done in other states and terminate all of their California affiliates (thus removing the presumption of a nexus).
    Michael Coley
    Amazing-Bargains.com
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  4. #3
    Speechless OTProf's Avatar
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    Major bummer. I was so excited last time it got defeated/tabled. We have thought of returning to SoCal (rainy Portland ain't our thing) but this certainly complicates that a bit

  5. #4
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    Quote Originally Posted by MichaelColey View Post
    Unbelievable that they promote a lie.
    Totally infuriating, especially considering all of this:

    The official legislative analysis of the independent Affiliate-Nexus bill contained a discussion of all of the true facts - that 25,000 CA affiliate marketers would see their businesses destroyed because merchants will terminate them rather than collecting the tax.

    After that became part of the official record, and the bill was passed by the state Assembly and sent to the state Senate, I was at an event for our Congressperson where I had the opportunity to speak with our district's State Senator (who I do not want to name). He listened to me for several minutes as I provided an explanation of the effects of the legislation, and his response was that he would like more information. He was, however, heading right back to Sacramento. It was obvious to me that he had not been aware of most of what I told him (despite the legislative analysis, and material sent directly to him, even going back to the letter I hand-delivered to his office two years earlier when the bill had previously been introduced).

    A political organization in which I am a very active member was then preparing the first of a series of forums on health care reform in California, to be held a few days later on a Sunday afternoon, and it was represented to us that the senator would attend, as this is an important issue to him (his vote as committee chair had gotten key reform legislation passed into the full senate). I was prepared to present the senator with a written analysis and documentation on the Affiliate-Nexus tax bill at the time of the forum.

    At the forum, where I served as moderator, in my intro I lavished praise on the senator regarding his efforts on the health care reform bill, but alas, he was not there to hear it, as the state Senate remained in session over the weekend, working on the budget bill. Thus I did not have the opportunity to speak to him in more detail, or again provide documentation directly to him.

    A few days later, the state Senate passed the Affiliate-Nexus bill. The next day, I was at a meeting of a different political group, where the senator's top aide spoke. Afterwards, I was able to talk to him about it, and he seemed astounded with what I had to tell him about the effects of the bill, and he seemed genuinely perturbed that it was too late for him to try and do anything about it.

    I sent my material by mail and email to the governor, as did the PMA and others, but no action was taken on the independent bill. Rather it is now, again, part of the new budget.
    Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
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  7. #5
    ABW Ambassador CathyM's Avatar
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    The whole budget is a farce, it "relies on $4 billion in better-than-expected revenue to help plug the state budget gap"

  8. #6
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    Quote Originally Posted by CathyM View Post
    The whole budget is a farce, it "relies on $4 billion in better-than-expected revenue to help plug the state budget gap"
    {trying not to trip over that line between political-relevant, and not} The fact of he matter is that SB810, the Single-Payer Universal Health Care Reform Bill, pending in the state Senate, would, if it becomes law, save the state of California $35 Billion per year, turning the deficit into a surplus, and removing the need for a "Smoke and Mirrors" budget or an Affiliate-Nexus Tax.
    Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
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  9. #7
    ABW Ambassador La_Valette's Avatar
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    If this idiocy keeps going on (which it probably will, since politicians are not about to get an education on how the internet works overnight), then the irony is that the only sure way to do uninterrupted business as an affiliate for US merchants will be to move overseas... (or one of the few states without a sales tax).
    Last edited by La_Valette; June 28th, 2011 at 10:23 PM.
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  10. #8
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    Budget passed both houses tonight - on to Brown who'll likely sign it tomorrow: Let the emails begin!

    I expect to take my next breadth two weeks from Thursday.

    Is Burger King hiring?
    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]

  11. #9
    2005 Linkshare Golden Link Award Winner  ecomcity's Avatar
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    All of Calif has been Greeced
    Quote Originally Posted by CathyM View Post
    The whole budget is a farce, it "relies on $4 billion in better-than-expected revenue to help plug the state budget gap"
    Basically this is just what/who the voters in Calif have chosen to control their taxpayer's checkbook continuously since 1956... Liberal Democrats. Welcome to Greece. Soon Calif will be auctioning off on Meg Whitman's eBay their national parks paying her the auction fee and trying to collect the Calif sales tax from Chinese internet mogul.

    I'll assume Jerry Brown is holding a grudge against internet retailers and eBay auction/affiliate types as he had to sell his worthless soul to win the Governor election against Meg Whitman.
    Last edited by ecomcity; June 29th, 2011 at 01:04 PM.
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  12. #10
    ABW Ambassador affninja's Avatar
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    Received termination notices from Overstock and Backcountry so far. Anyone else?
    Your Ad Here.

  13. #11
    Life is Supposed to be Fun! Rexanne's Avatar
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    Peace,

    Rexanne

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  14. #12
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    Quote Originally Posted by ecomcity View Post
    Basically this is just what/who the voters in Calif have chosen to control their taxpayer's checkbook continuously since 1956... Liberal Democrats. Welcome to Greece. Soon Calif will be auctioning off on Meg Whitman's eBay their national parks paying her the auction fee and trying to collect the Calif sales tax from Chinese internet mogul.

    I'll assume Jerry Brown is holding a grudge against internet retailers and eBay auction/affiliate types as he had to sell his worthless soul to win the Governor election against Meg Whitman.
    The repub gropenfuhrer guv was responsible for the deficit and it was the repub gropenfuhrer guv who tried to sell off 3/4 of the state's property (State Supreme Court Bldg, RReagan State Office Bldg, State Fairgrounds, etc etc) till GOVERNOR BROWN STOPPED IT. Repub legis minority would not agree to let the people decide whether or not a small tax increase should be extended - if so, it would have taken care of the deficit and may have stopped passage of the affiliate-nexus tax.
    Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
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  15. #13
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    Not in Backcountry prog but got it from the ever-vigilant Overstock who does the deed BEFORE the budget bill is signed.
    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]

  16. #14
    ShareASale President/CEO and ABW Veteran Brian - ShareASale's Avatar
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    The constant spread of this is why I think we need to go after a federal solution.
    Thanks,

    Brian Littleton
    President/CEO - ShareASale.com, Inc.

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  18. #15
    2005 Linkshare Golden Link Award Winner  ecomcity's Avatar
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    Quote Originally Posted by AffiliateHound View Post
    The repub gropenfuhrer guv was responsible for the deficit and it was the repub gropenfuhrer guv who tried to sell off 3/4 of the state's property (State Supreme Court Bldg, RReagan State Office Bldg, State Fairgrounds, etc etc) till GOVERNOR BROWN STOPPED IT. Repub legis minority would not agree to let the people decide whether or not a small tax increase should be extended - if so, it would have taken care of the deficit and may have stopped passage of the affiliate-nexus tax.
    Arnold was so Eurotrash right from the get-go, or he wouldn't have married a Kennedy. The LaTimes article and comments sections said if the fictional billions in revenue doesn't flow into the Calif treasure many Calif landmarks and treasures will have to be sold off. Part of phase II of the budget bill. Like in Greece the Public Sector Unions won't allow the socialists in the DEM controlled congress any cuts in the Gov't worker headcounts or reductions in the hundreds of just retired 50 yr old Lifeguards with the 100K/yr pensions and lifetime free healthcare. How they zeroed in on an affiliate agent sales tax on internet sales for passage is beyond me unless the eBay run for Governor left a get-back taste in Browns craw.
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  19. #16
    Outsourced Program Manager kgarcia's Avatar
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    Agreed Brian...this messy patchwork does no one any good.

    Endless.com just sent out their intentions to terminate if the bill passes.
    Karen Garcia
    [URL=http://lab6media.com]Lab6 Media[/URL]
    Are you a content creator? A serial entrepreneur? New to the space or a long time player? We'd love to work with you!
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  20. #17
    Full Member justnet's Avatar
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    I just forwarded my amazon termination email to the Governor.

  21. #18
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    Quote Originally Posted by ecomcity View Post
    Arnold was so Eurotrash right from the get-go, or he wouldn't have married a Kennedy. The LaTimes article and comments sections said if the fictional billions in revenue doesn't flow into the Calif treasure many Calif landmarks and treasures will have to be sold off. Part of phase II of the budget bill. Like in Greece the Public Sector Unions won't allow the socialists in the DEM controlled congress any cuts in the Gov't worker headcounts or reductions in the hundreds of just retired 50 yr old Lifeguards with the 100K/yr pensions and lifetime free healthcare. How they zeroed in on an affiliate agent sales tax on internet sales for passage is beyond me unless the eBay run for Governor left a get-back taste in Browns craw.
    If I say what I want to say, I'll likely get suspended, banned, or worse.

    Suffice to say that the first efforts to pass an Affiliate-Nexus Tax in CA were the year before Whitman ran for Governor.
    Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
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    "Raj, there’s no place for truth on the internet." -Howard Wolowitz[/SIZE]

  22. #19
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    Quote Originally Posted by justnet View Post
    I just forwarded my amazon termination email to the Governor.
    Good idea.
    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]

  23. #20
    Full Member justnet's Avatar
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    Quote Originally Posted by AffiliateHound View Post
    Good idea.
    here's a copy in case you didn't get yours yet... (you know what to do)

    Hello,
    For well over a decade, the Amazon Associates Program has worked with thousands of California residents. Unfortunately, a potential new law that may be signed by Governor Brown compels us to terminate this program for California-based participants. It specifically imposes the collection of taxes from consumers on sales by online retailers - including but not limited to those referred by California-based marketing affiliates like you - even if those retailers have no physical presence in the state.

    We oppose this bill because it is unconstitutional and counterproductive. It is supported by big-box retailers, most of which are based outside California, that seek to harm the affiliate advertising programs of their competitors. Similar legislation in other states has led to job and income losses, and little, if any, new tax revenue. We deeply regret that we must take this action.

    As a result, we will terminate contracts with all California residents that are participants in the Amazon Associates Program as of the date (if any) that the California law becomes effective. We will send a follow-up notice to you confirming the termination date if the California law is enacted. In the event that the California law does not become effective before September 30, 2011, we withdraw this notice. As of the termination date, California residents will no longer receive advertising fees for sales referred to Amazon.com, Endless.com, MYHABIT.COM or SmallParts.com. Please be assured that all qualifying advertising fees earned on or before the termination date will be processed and paid in full in accordance with the regular payment schedule.

    You are receiving this email because our records indicate that you are a resident of California. If you are not currently a resident of California, or if you are relocating to another state in the near future, you can manage the details of your Associates account here. And if you relocate to another state in the near future please contact us for reinstatement into the Amazon Associates Program.

    To avoid confusion, we would like to clarify that this development will only impact our ability to offer the Associates Program to California residents and will not affect their ability to purchase from Amazon.com, Endless.com, MYHABIT.COM or SmallParts.com.

    We have enjoyed working with you and other California-based participants in the Amazon Associates Program and, if this situation is rectified, would very much welcome the opportunity to re-open our Associates Program to California residents. We are also working on alternative ways to help California residents monetize their websites and we will be sure to contact you when these become available.

    Regards,

    The Amazon Associates Team
    Last edited by justnet; June 29th, 2011 at 03:35 PM.

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  25. #21
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    No, I got mine ...............
    Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
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  26. #22
    Full Member justnet's Avatar
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    I also posted it to facebook


    Quote Originally Posted by justnet View Post
    here's a copy in case you didn't get yours yet... (you know what to do)

    Hello,
    For well over a decade, the Amazon Associates Program has worked with thousands of California residents. Unfortunately, a potential new law that may be signed by Governor Brown compels us to terminate this program for California-based participants. It specifically imposes the collection of taxes from consumers on sales by online retailers - including but not limited to those referred by California-based marketing affiliates like you - even if those retailers have no physical presence in the state.

    We oppose this bill because it is unconstitutional and counterproductive. It is supported by big-box retailers, most of which are based outside California, that seek to harm the affiliate advertising programs of their competitors. Similar legislation in other states has led to job and income losses, and little, if any, new tax revenue. We deeply regret that we must take this action.

    As a result, we will terminate contracts with all California residents that are participants in the Amazon Associates Program as of the date (if any) that the California law becomes effective. We will send a follow-up notice to you confirming the termination date if the California law is enacted. In the event that the California law does not become effective before September 30, 2011, we withdraw this notice. As of the termination date, California residents will no longer receive advertising fees for sales referred to Amazon.com, Endless.com, MYHABIT.COM or SmallParts.com. Please be assured that all qualifying advertising fees earned on or before the termination date will be processed and paid in full in accordance with the regular payment schedule.

    You are receiving this email because our records indicate that you are a resident of California. If you are not currently a resident of California, or if you are relocating to another state in the near future, you can manage the details of your Associates account here. And if you relocate to another state in the near future please contact us for reinstatement into the Amazon Associates Program.

    To avoid confusion, we would like to clarify that this development will only impact our ability to offer the Associates Program to California residents and will not affect their ability to purchase from Amazon.com, Endless.com, MYHABIT.COM or SmallParts.com.

    We have enjoyed working with you and other California-based participants in the Amazon Associates Program and, if this situation is rectified, would very much welcome the opportunity to re-open our Associates Program to California residents. We are also working on alternative ways to help California residents monetize their websites and we will be sure to contact you when these become available.

    Regards,

    The Amazon Associates Team

  27. #23
    ABW Ambassador isellstuff's Avatar
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    We are also working on alternative ways to help California residents monetize their websites and we will be sure to contact you when these become available.
    That is interesting. I wonder what they are cooking up? Amazon PPC advertising?
    Merchants, any data you provide to Google Shopping should also be in your affiliate network datafeed. More data means more sales!

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  29. #24
    ABW Ambassador
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    Quote Originally Posted by isellstuff View Post
    That is interesting. I wonder what they are cooking up? Amazon PPC advertising?
    Something ala Adsense?

  30. #25
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    I stepped out for a couple of hours, then saw Amazon's termination letter in my email inbox when I sat down -- and already it's old news here.

    I'm now re-generating 2,000 content pages on my web site, to reflect the loss of Amazon as a paid advertiser.

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