Affiliate marketing posts from seasoned affiliate marketing pro Missy Ward.

Hawaii Advertising Tax HB105 is Back From the Dead

by Missy Ward

Some bad news… Hawaii's HB105 has risen from the dead.

Last week, Hawaiian small businesses in the affiliate marketing industry breathed a little easier when the nexus language was removed from the bill by the Senate.

Unfortunately, when the bill went back to the House this week, the nexus language was added back in.

The lobbyists working with the Performance Marketing Association are trying to get more details on what transpired. Additional information will be provided shortly pertaining to the legislators to contact in order to fight this bill.

Amazon has already noted in this public letter (page 6) that they are prepared to terminate all of their relationships with the small businesses in Hawaii that are working with them on a performance basis.

I'm quite certain that there are more companies that will follow in Amazon's footsteps should this legislation pass.

This session ends on May 7th. It's extremely important when you're contacting your representatives to let them know that this is a losing proposition all around. Hawaii will not get the sales tax revenues that they're expecting because the merchants like Amazon will simply terminate their relationships with marketers in Hawaii. The small businesses performing the marketing will experience a loss of income. Hawaii loses the income tax from those marketers.

Where is the logic in any of that?

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Maryland Advertising Tax SB 1071 Gets Squashed

by Missy Ward

Maryland affiliates can breathe a little easier today as Senate Bill 1071 didn't make it out of committee before the Session ended last night.

A big w00t goes out to all of the affiliate marketers and Lobbyists that worked on the crusade.

Although the bill will likely make a comeback during the next session, we now have the luxury of time on our side to focus on contacting Maryland's Representatives and Senators to make sure they understand the ramifications of passing this type of legislation.

But, NOW is the time to concentrate our efforts on Connecticut's SB 806 (which is ready to be debated in the Senate as early as today) and and Minnesota's SF 282 (scheduled for the Committee on Taxes on April 16th)

It's so important to get in touch with these state's representatives to let them know that they will be putting thousands of small businesses that are in the affiliate marketing industry, out of business should this type of legislation pass.

The Performance Marketing Association has created templated correspondence to contend with Connecticut making it easy for you to contact the representatives. That information can be found here

Below is the person you should contact regarding Minnesota's SF282:
Senator Thomas M. Bakk – the sponsor of SF282
Email Form
651.296.8881

In your conversations with these representatives make sure that you let them know that similar efforts regarding nexus have been quelled in Virginia, Hawaii and now Maryland!

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New State Laws May Put You Out of Business

by Missy Ward

My post earlier this week, “California to Stomp on Small Business Owners“, has spurred a lot of online retailers and affiliate marketers to contact me to find out exactly how they're going to be affected by the pending legislation in California, Hawaii, Minnesota, Tennessee, Connecticut, Maryland, North Carolina and possibly now Florida.

While I'd love to talk to each of you individually, I'm falling way behind in getting back to you and my day job, so please consider this my personal apology.

That being said, Shawn Collins just put up a brief 2-minute video explaining the threat and implications of this unconstitutional “Advertising Tax (also known as “Amazon Tax” or “Affiliate Tax”.)

In the video, he further explains what you can do to help fight this legislation and resources available to make it easy.

So whether your an online merchant, affiliate network, advertising network, affiliate marketer, online publisher, or simply care about protecting the U.S. Constitution, it's imperative that you take action.

When all this comes down in your state, be sure to note how your representative(s) voted and then put them out of a job at the next election if they voted against your livelihood.

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California Lawmakers To Stomp On Small Business Owners

by Missy Ward

Stomping On Small Business

Due to the extreme financial crisis that California is experiencing, Assemblymember Nancy Skinner (D) introduced new legislation earlier this year, designed to quickly get the cash needed to help make California whole again.

The pending legislation (Assembly Bill 178 or “AB 178”) calls for out-of-state companies (typically internet retailers) that maintain a physical presence in California to begin collecting sales tax on orders received from within California.

The problem with AB 178 is that it unjustly categorizes thousands of California’s small businesses that are involved in online advertising for the out-of-state-companies as the “physical presence” that California needs to assign the nexus.

The goal of AB178 is to increase state revenue and preserve California’s brick-and-mortar businesses and jobs by leveling the playing field against the competitive out-of-state online retailers. However, history has shown us that ultimately, thousands of California’s small businesses and residents will be significantly harmed.

Last year, the eerily similar “Amazon Tax” law was enacted in New York. Within days, the out-of-state retailers decided it was easier to terminate the relationships with the New York-based small businesses that were providing them with online advertising services instead of beginning to collect sales tax and file the related tax forms.

Many of the impacted small businesses were left with the choice to drastically alter their business operations including laying off employees, move out of state or simply close up shop. Any of these selections diminished the value of the increased sales tax that NY expects to garner.

Ironically, similar legislation is being entertained in Hawaii now as well. Amazon’s Vice President for Global Public Policy, Paul Misener has already indicated their intention to cease all relationships with the Hawaii-based small businesses providing online advertising services for them, should the law become enacted. (See page 6)

Minnesota, Tennessee, Connecticut, Maryland and North Carolina join California with similar legislation on the books. Illogically, all of these states are ignoring the U.S. Supreme Court decision of Quill v. North Dakota which ruled on the nexus issue back in 1992.

A hearing date for California Assembly Bill 178 has been scheduled for April 27, 2009 at 1:30 pm in room 126 at the State Capitol.

There is a lot that can be done to defeat this bill. However, the owners of California’s small businesses who stand to be affected must step up now. Reaching out to your Assemblymember is the most effective way to do so as they do listen to their constituents. It’s time to deluge their offices with all forms of opposition – whether by phone calls, letters, emails, faxes and visits.

It is with great hope that California votes NO on AB 178 after examining the ensuing effects that it will have on their own small businesses and residents.

As a driving force in the US economy, California has the opportunity to set an example to the other states entertaining this dubious legislation, that the State of California encourages and supports their local small businesses.

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