Results 1 to 9 of 9
  1. #1
    Outsourced Program Manager John Jupp's Avatar
    Join Date
    January 23rd, 2005
    Location
    England
    Posts
    1,502
    Multi Site Merchant Shafts California and Pennsylvania
    I am astounded that with 30 of the 50 States discussing or having introduced a Nexus tax that merchants in the US (especially given talk of a Federal tax) are still canning US based affiliates who happen to be in the wrong State.

    I am absolutely gobsmacked that agency AffiliateTraction has done nothing to defend their affiliates. Absolutely disgraceful and if someone from AffiliateTraction would care to comment then please do so. Whilst having clients is important having a lasting relationship with affiliates is equally important and when you manage so many programs just remember those affiliates will be pissed.

    So hang your head in shame alongside WorldSoccerShop, WorldRugbyShop, WorldLaCrosseShop, WorldKeeperShop and BigToe.

    Now virtual offices look pretty good but given you are registered for States taxes, could someone knowledgeable advise if US affiliates used virtual offices to have a new "physical presence" and registered their work as from there (paying State tax there), they'd get around the Nexus taxes that merchants are paying and stay on the programs.
    Flambi Media Limited - USA/UK/EU Affiliate Management Expertise

  2. #2
    ...and a Pirate's heart. Convergence's Avatar
    Join Date
    June 24th, 2005
    Posts
    6,918
    Quote Originally Posted by John Jupp View Post
    I am astounded that with 30 of the 50 States discussing or having introduced a Nexus tax that merchants in the US (especially given talk of a Federal tax) are still canning US based affiliates who happen to be in the wrong State.

    I am absolutely gobsmacked that agency AffiliateTraction has done nothing to defend their affiliates. Absolutely disgraceful and if someone from AffiliateTraction would care to comment then please do so. Whilst having clients is important having a lasting relationship with affiliates is equally important and when you manage so many programs just remember those affiliates will be pissed.

    So hang your head in shame alongside WorldSoccerShop, WorldRugbyShop, WorldLaCrosseShop, WorldKeeperShop and BigToe.

    Now virtual offices look pretty good but given you are registered for States taxes, could someone knowledgeable advise if US affiliates used virtual offices to have a new "physical presence" and registered their work as from there (paying State tax there), they'd get around the Nexus taxes that merchants are paying and stay on the programs.
    Couple of things, John:

    1. There is NO talk about a Federal Tax (IE like the UK's VAT)
    2. If an affiliate would happen to register their business in one State, and turn on a computer in another - they have created a nexus. Does not matter where you are registered to do business...
    Salty kisses, Sandy toes, and a Pirate's heart...

  3. Thanks From:

  4. #3
    Affiliate Manager AffiliateWarrior's Avatar
    Join Date
    January 18th, 2005
    Location
    Florida USA
    Posts
    1,305
    Convergence, there is talk of a Federal solution that actually has bi-partisan support. It's just not going to come down in an election year.

    I know affiliates are frustrated, but in the merchant situations, sometimes they are forced into taking some really distasteful actions by some state legislatures that are playing fast and loose with the Constitution in a desperate money grab in hard times.

    Most of these states aren't trying to pass laws that say that the Affiliate Nexus based taxes will go into effect in one year and that merchants have time to get the right tools in place to collect and remit the taxes. Many are saying that as soon as this law passes and is signed the merchant owes us for 3-5 years of back taxes (which the merchant was under no legal obligation to collect)

    Nothing about this is simple, other than the fact that this crap is unconstitutional under the Commerce Clause, but that is something that seems to be getting overlooked by politicians being steered by big box store using mom and pop stores as fronts.
    Wade Tonkin - Affiliate Manager - Fanatics
    NFLShop.com|Shop.NHL.com|NBAStore.com|Store.NASCAR.com
    Email wtonkin // at // Fanatics.com

  5. #4
    ...and a Pirate's heart. Convergence's Avatar
    Join Date
    June 24th, 2005
    Posts
    6,918
    Quote Originally Posted by AffiliateWarrior View Post
    Convergence, there is talk of a Federal solution that actually has bi-partisan support. It's just not going to come down in an election year.
    Yes, but I personally have not seen a Federal "tax" being mentioned.

    Any links to that?
    Salty kisses, Sandy toes, and a Pirate's heart...

  6. #5
    Affiliate Manager AffiliateWarrior's Avatar
    Join Date
    January 18th, 2005
    Location
    Florida USA
    Posts
    1,305
    There was actually a hearing on the Marketplace Equity Act of 2012 – H.R. 3179 on 7/24 -

    Affiliate Impacting Legislation Before House Judiciary Committee
    Wade Tonkin - Affiliate Manager - Fanatics
    NFLShop.com|Shop.NHL.com|NBAStore.com|Store.NASCAR.com
    Email wtonkin // at // Fanatics.com

  7. #6
    Affiliate Manager AffiliateWarrior's Avatar
    Join Date
    January 18th, 2005
    Location
    Florida USA
    Posts
    1,305
    It's not necessarily a VAT - but the intent is to come up with something more consistent and more fair than letting states argue nexus based on affiliate presence in a state.
    Wade Tonkin - Affiliate Manager - Fanatics
    NFLShop.com|Shop.NHL.com|NBAStore.com|Store.NASCAR.com
    Email wtonkin // at // Fanatics.com

  8. #7
    ...and a Pirate's heart. Convergence's Avatar
    Join Date
    June 24th, 2005
    Posts
    6,918
    Right. The Feds haven't proposed anything whereas they would collect a Federal Tax - just proposals to allow States to go forward with their collection attempts.

    If the Feds were to implement a tax of their own, they would bundle it with something like, say, the Healthcare tax...

    Salty kisses, Sandy toes, and a Pirate's heart...

  9. #8
    Affiliate Manager AffiliateWarrior's Avatar
    Join Date
    January 18th, 2005
    Location
    Florida USA
    Posts
    1,305
    and keep in mind that the tax is owed - there's just never been an effective mechanism to collect it.
    Wade Tonkin - Affiliate Manager - Fanatics
    NFLShop.com|Shop.NHL.com|NBAStore.com|Store.NASCAR.com
    Email wtonkin // at // Fanatics.com

  10. #9
    Affiliate Manager AffiliateWarrior's Avatar
    Join Date
    January 18th, 2005
    Location
    Florida USA
    Posts
    1,305
    I think you will eventually see something where a flat rate tax is collected on Internet orders, then a percentage is split off for state and local taxes. I don't think they can realistically make Internet sales match up with the traditional tax model where every state has 200+ tax districts that get different percentages. There needs to be a simple say 5% sales tax for online orders where the fed takes 2 and the states get the rest.
    Wade Tonkin - Affiliate Manager - Fanatics
    NFLShop.com|Shop.NHL.com|NBAStore.com|Store.NASCAR.com
    Email wtonkin // at // Fanatics.com

  11. Thanks From:

  12. Newsletter Signup

+ Reply to Thread

Similar Threads

  1. Affiliate Nexus Tax Law: California and Pennsylvania Updates (PMA)
    By Krystyna Lijek in forum Rakuten LinkShare - LS
    Replies: 1
    Last Post: August 22nd, 2012, 02:32 PM
  2. Featured: Pennsylvania seeks $345M cut of Internet retail sales Read more: Pennsylvania seeks
    By Chuck Hamrick in forum Pennsylvania Affiliate Tax
    Replies: 18
    Last Post: February 6th, 2012, 03:12 PM
  3. Does anyone use the multi-merchant banner rotation feature?
    By buy_online in forum Rakuten LinkShare - LS
    Replies: 3
    Last Post: July 8th, 2002, 08:47 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •