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  1. #1
    Join Date
    June 30th, 2011
    California Nexus Less of a Problem
    As some of you might know, on August 21, the Performance Marketing Association (PMA) published a nexus tax update for California. It seems that affiliates will not create nexus for merchants unless they engage in specific practices that the BOE considers solicitation.

    Affiliate Nexus Tax Update: California and Pennsylvania | Performance Marketing Association

    This update says:

    "The BOE has developed a work-around process that will allow affiliate relationships to remain in place, under certain circumstances. Modeled after similar regulations developed in New York, advertisers can still work with California publishers and not have nexus established, if their publishers agree to avoid certain marketing activities that are deemed ‘solicitation’ or directly targeting California consumers. This means publishers are not allowed to send emails to Californians, distribute fliers, or verbally inform people to visit advertisers’ sites."

    The regulation can be found on the BOE website.

    The BOE seems to clarify their definition of solicit with this line:

    (F) "Solicit," "solicitation," "refer," and "referral" do not mean or include online advertising generated as a result of generic algorithmic functions that is anonymous and passive in nature, such as ads tied to Internet search engines, banner ads, click-through ads, Cost Per Action ads, links to retailers’ websites, and similar online advertising services.

    So if the strength of your marketing program is that you use Google Search to drive traffic, you should be fine as that alone doesn't create nexus.

  2. #2
    OPM and Moderator Chuck Hamrick's Avatar
    Join Date
    April 5th, 2005
    Park City Utah
    That info was posted here back on the 21st:

  3. #3
    Join Date
    June 30th, 2011
    Yes, it was. But there is still a lot of confusion among merchants and affiliates so i thought it merited reposting on a new thread and adding the BOE's definition of "solicit."

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