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  1. #1
    OPM and Moderator Chuck Hamrick's Avatar
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    Pennsylvania seeks $345M cut of Internet retail sales Read more: Pennsylvania seeks

  2. #2
    Full Member gcarson's Avatar
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    Did something happen in PA recently? I just received this email:

    Dear:

    We regret to inform you that Fingerhut Direct Marketing, Inc has removed you from their affiliate program.

    Below is a message from the advertiser:

    Dear Affiliate:

    Unfortunately, due to clarifications to the law in Pennsylvania, we feel it is prudent to discontinue our relationship with all Pennsylvania affiliates. Bluestem Brands, Inc ("Bluestem") (d/b/a Fingerhut and d/b/a Gettington) has no tax nexus in any state other than Minnesota, the home of our headquarters.

    Accordingly, Bluestem hereby immediately terminates all affiliate agreements currently in place with affiliates who are legal or taxpaying residents of the Commonwealth of Pennsylvania, as of December 1, 2011, (the Affected Affiliates"). Any money due to Affected Affiliates as of December 1, 2011 will be paid in the ordinary course. In connection with termination of these agreements, all Affected Affiliates should immediately remove an/or cease use of all references to Fingerhut and/or Gettington in or on any of your affiliate materials.

    We regret that Bluestem has been put in this position and wish you all the best in your future business endeavors.

    Yours truly,

    Chidam Chidambaram
    Vice President, Marketing

  3. #3
    notary sojac Herb ԿԬ's Avatar
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    yup, Pennsylvania got greedier. Time for a new section here for PA as merchants may start dropping like flies.

  4. #4
    Full Member gcarson's Avatar
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    Just got another one...

    Finally found an article on it.

    http://performancemarketingassociati...-nexus-tax-law

  5. #5
    OPM and Moderator Chuck Hamrick's Avatar
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    Created Thread: Merchants Terminating PA Affiliates

    Will get a Pennsylvania Affiliate Tax sub forum created as well.

  6. Thanks From:

  7. #6
    Full Member gcarson's Avatar
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    I just got off the phone with someone in State Representative William Adolph's office who is head of the State Appropriations Committee. He said its not a new law but just an interpretation of what's already law. He was a little surprised to hear that merchants were already dropping affiliates in the state. He was very nice and asked me to send him along information about merchants dropping me and any impact that this new interpretation might have. I'm not exactly a large affiliate and was hoping there were some in PA? If so, reach out to me and I'll give you the person's contact information to speak with.

  8. #7
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    Hi. I am also a PA affiliate marketer.

    Someone just sent me a link to this thread after finding a blog post that I just made 10 minutes ago about the topic.

    I came back from lunch to find out I was terminated by the majority of my merchants on Avantlink.com

    This was all new news to me.

  9. #8
    OPM and Moderator Chuck Hamrick's Avatar
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    Mike feel free to post your blog post as a quote.

  10. #9
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    I'm not too worried yet about Avantlink. I just started promoting a lot fo their merchants but have not earned a significant amount of money from their program as of yet. But I did spend quite a lot of time building 3 sites around their merchants - sites which will all be worthless in 7 days. This is the explanation I got from one of the merchants:

    Unfortunately, PA passed the affiliate sales tax law requiring us to terminate partnerships with PA based publishers. If you set your business up outside of PA please reach out and let us know. Pennsylvania Enacts Affiliate Nexus Tax law | Performance Marketing Association We are taking a preemptive approach to raise awareness of the issue, as you know you are still active for 7 days, if anything changes I will be sure to let you know.

    When I emailed my affiliate manager at Avantlink he had this to say:

    In the past only a handful of merchants have taken the action of kicking out Affiliates completely. We're just starting to look into the PA tax law, so we're not quite sure yet what the ramifications will be yet.

    Does anyone know if this will affect the ebay partner network or Adsense? Those are my 2 biggest earners.

  11. #10
    OPM and Moderator Chuck Hamrick's Avatar
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    Which AvantLink merchants terminated you and can you post those to http://www.abestweb.com/forums/affil...es-151580.html

  12. #11
    Full Member gcarson's Avatar
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    What's great is.. they just gave 'guidance' on an existing law so that way they wouldn't have to pass new legislation / take it to a vote. What a nice end around.

    This document: http://performancemarketingassociati...ller_Nexus.pdf

    Examples of maintaining a place of business in the Commonwealth include, but are not
    limited to:
    ....

    A remote seller who has a contractual relationship with an entity or individual physically located in Pennsylvania whose website has a link that encourages purchasers to place orders with the remote sellers. The in-state entity or individual receives consideration for
    the contractual relationship with the remote seller.

    A remote seller utilizing affiliates, agents and/or independent contractors located in Pennsylvania who will provide repair, delivery or other service relating to tangible personal property sold by the remote seller to Pennsylvania customers.

    A remote seller’s affiliates, agents and/or independent contractors provide service(s) within the Commonwealth (including, but not limited to storage, delivery, marketing or soliciting sales) that benefit, support and/or complement the remote seller’s business
    activity.
    ....

    When a remote seller is maintaining a place of business in this Commonwealth as defined above in the TRC, as illustrated by the foregoing examples, such remote seller has nexus with the Commonwealth.

  13. #12
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    Ok, I posted my list in the other thread. Says it needs to be approved by a moderator.

  14. #13
    Moderator BurgerBoy's Avatar
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    Quote Originally Posted by miketmartin View Post
    Ok, I posted my list in the other thread. Says it needs to be approved by a moderator.
    Done.

    Vietnam Veteran 1966-1970 USASA
    ABW Forum Rules - Advertise At ABW

  15. #14
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    Here is a link to the official press release pdf from the Pennsylvania Department of Revenue:

    http://performancemarketingassociati...-sales-tax.pdf

  16. #15
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    I found an article this morning that explains things well with regard to PA:
    New online sales tax policy could boost state revenues, hurt some businesses | pennlive.com

    As with other states who have put into effect similar law, PA is using two factors to try and now say that Amazon has a nexus in the state. One is their fulfillment centers and the other is the fact that they have affiliates in the state. With regard to fulfillment centers, Amazon has successfully argued in the past that those are operated as independent firms which Amazon becomes licensed with to do business. Pennsylvania addressed this by stating that a remote seller will have to collect taxes if it "accepts orders that are directly shipped to Pennsylvania customers from a Pennsylvania facility which is operated by a remote seller's affiliate, agent or independent contractor."

    The big question is will Amazon still terminate affiliates even though they still have fulfillment centers in PA? Given the new legislation for a national solution (supported by Amazon), its hard to say what will happen. History shows that they will likely terminate affiliates and head to court. However, a national solution has never been as close as it is now. Whether that could in some way encourage them to not sever ties with PA affiliates is left to be seen.

    With regard my own business, Amazon is only one of dozens of merchants that we work with as an affiliate. To be honest, like many others, I'm dreading what the coming week has in store for us. Saying its going to be chaotic could be a gross understatement.

  17. #16
    Full Member gcarson's Avatar
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    Interesting article Online sales tax could boost state revenue, hurt businesses*|*Statehousenewsonline.com

    DelBianco said the policy is also “blatantly discriminatory” against online publishers, because it specifically identifies website advertising as providing grounds for nexus, but not advertising in Pennsylvania-based newspapers and television or radio stations.
    On those grounds, the policy also may run afoul of federal law, which prohibits taxing electronic commerce differently than other types of exchange.
    Elizabeth Brassell, spokeswoman for the state Department of Revenue, said the examples given in the new policy were meant to be “including but not limited to” website advertising, but print ads and other forms of direct promotions within the state also would qualify as nexus.
    So ecommerce sites can't advertise in newspapers either in PA? Talking about far reaching.

  18. #17
    Full Member gcarson's Avatar
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  19. #18
    OPM and Moderator Chuck Hamrick's Avatar
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    Does anyone have details of this?

    This week, state officials extended the effective date when some online sellers will have to comply with sales tax requirements from Feb. 1. That date was set when Pennsylvania announced in a tax bulletin on Dec. 1 which types of retailers are required to collect and turn over 6 percent, or sometimes more, in sales tax when they sell to Pennsylvania customers.

    Read more: Start of online sales tax collection by Pennsylvania delayed - Pittsburgh Tribune-Review Start of online sales tax collection by Pennsylvania delayed - Pittsburgh Tribune-Review
    Start of online sales tax collection by Pennsylvania delayed

  20. #19
    ABW Ambassador I.M.O.G.'s Avatar
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    Added a Pennsylvania forum to gather developments here in one place for those affected:
    Pennsylvania Affiliate Tax - ABestWeb Affiliate Marketing Forum
    Matt Bidinger
    Online Community Engagement

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