hawaii advertising tax

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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?