Comments on: Warning – California “Affiliate” Online Sales Tax Proposed

By: UrbanSurvival » Blog Archive » One World Currency

UrbanSurvival » Blog Archive » One World Currency — Fri, 27 Mar 2009 13:09:46 +0000

[...] depend on online advertising for a significant chunk of your income, you might want to read “Warning: California “Affiliate” online sales tax proposed.“ Thankfully, I built this here business model without relying on affiliate/banner [...]

By: Linda Buquet

Linda Buquet — Fri, 20 Mar 2009 20:18:13 +0000

UPDATE: 3/20 - Please be sure to read Help us Lobby Against CA AB 178 - Affiliate Sales Tax

By: Linda Buquet

Linda Buquet — Fri, 20 Mar 2009 16:58:58 +0000

Avromie, one of the concerns about this bill is that it is overly broad and could affect lots of companies like Google and eBay too. The way it’s written it could almost be stretched to include magazine and newspaper ads too.

By: Avromie Israel

Avromie Israel — Fri, 20 Mar 2009 16:48:30 +0000

Doesn’t this mean that anyone using Google PPC will have to pay sales tax in CA? the language of the law is “commission or other compensation”.

By: The Upside of the Proposed California Affiliate Tax | Just Good Thinking

The Upside of the Proposed California Affiliate Tax | Just Good Thinking — Mon, 09 Mar 2009 03:07:50 +0000

[...] Warning – California “Affiliate” Online Sales Tax Proposed (5 Star Affiliate Programs) [...]

By: Linda Buquet

Linda Buquet — Wed, 04 Mar 2009 21:50:30 +0000

I will have some major news on this front some time this week. I need to wait to get the all clear before I can blog it. Stay tuned.

By: The Upside of the Proposed California Affiliate Tax | Affiliate Marketing Blog by Shawn Collins

Wed, 04 Mar 2009 12:57:20 +0000

[...] Warning – California “Affiliate” Online Sales Tax Proposed (5 Star Affiliate Programs) [...]

By: The Upside of the Proposed California Affiliate Tax

The Upside of the Proposed California Affiliate Tax — Wed, 04 Mar 2009 01:51:28 +0000

[...] Warning – California “Affiliate” Online Sales Tax Proposed (5 Star Affiliate Programs) [...]

By: Linda Buquet

Linda Buquet — Sun, 01 Mar 2009 19:03:45 +0000

Hi Brian, thanks for weighing in.

I don’t think moving the corporation is a good idea as they spelled out somewhere in the NY law it’s where you are physically located not the corp location.

Besides if CA passes this it’s going to spread to other states. I really think this is going to eventually lead to the streamlined sales tax. Then the whole affiliate issue is off the table because all states would have to charge online sales tax, regardless of affiliates, therefore merchants won’t have a reason to drop affiliates from certain states. But that could be a couple years off I guess.

In the meantime I would just hold tight in NY. Work with the merchants you can that aren’t affected by the law or who have chosen to still work with their NY partners.

By: Brian

Brian — Sun, 01 Mar 2009 18:56:05 +0000

Right now we are thinking about moving our corporation out of New York – in order to protest this punitive and short-sighted legislation and to remain eligible to promote affiliate products.
Do you think this makes sense?
Where would you move a corp?
Affiliates need to fight back with action. Thanks for the information.

By: Ed

Ed — Fri, 27 Feb 2009 09:01:55 +0000

Let yourself be heard here:

http://change.gov/content/home

Or share this story to The President:
http://www.facebook.com/barackobama

By: Linda Buquet

Linda Buquet — Fri, 27 Feb 2009 00:37:55 +0000

Looks like it’s correct – a majority vote is all that’s required.

It could be heard in committee as soon as 3/5, that’s next Thursday!

AB 178 Assembly Bill – History
http://www.leginfo.ca.gov/pub/09-10/bill/asm/ab_0151-0200/ab_178_bill_20090203_history.html

I just wrote 2 letters to the assembly.

You can object and give them your concerns here.
http://www.assembly.ca.gov/acs/legcomment/legcomment.asp?bill_number=ab_178&author=skinner

By: Linda Buquet

Linda Buquet — Fri, 27 Feb 2009 00:34:23 +0000

“NY affiliates were axed by merchants after the law was passed. If this passes in CA, merchants will probably do the same to CA affiliates.”

Many merchants kept their NY affiliates, only some of the merchants canned affiliates.

“My question is…if all states pass this tax, won’t merchants then reopen their respective affiliate programs to everyone?”

I suspect what will happen is all states will eventually buy into the streamlined sales tax, then the whole affiliate issue is off the table because all states would have to charge online sales tax, regardless of affiliates. I hate to see it come to that, but at least it would be fair, while this bill that singles out merchants that have affiliates, is not!

By: Jen

Jen — Thu, 26 Feb 2009 23:27:43 +0000

Like everyone else, I’m totally against this and hope it will not pass since I live in CA. I did have a question though.

NY affiliates were axed by merchants after the law was passed. If this passes in CA, merchants will probably do the same to CA affiliates.

My question is…if all states pass this tax, won’t merchants then reopen their respective affiliate programs to everyone?

By: Linda Buquet

Linda Buquet — Thu, 26 Feb 2009 21:19:28 +0000

You’re welcome Melanie. Thanks for catching the story and doing so much research to help CA affiliates. You more than anyone, know the impact something like this can have.

Not only is it tighter, but after what happened in New York, I’m not sure that any big companies are going to want to invest legal dollars to try to fight this unfortunately.

By: Melanie Seery

Melanie Seery — Thu, 26 Feb 2009 21:09:14 +0000

Thanks for helping to spread the word on this Linda. The California bill is scary because it is very strict, no wiggle room. If it passes, other states will move quickly.

I’ll be following this and other states very closely.

It’s going to be an eventful year.