Help us Lobby Against CA AB 178 – Affiliate Sales Tax
For the past 2 weeks I have been in communication with the California Taxpayers Association who along with the California Chamber of Commerce has formed a coalition to lobby against California AB 178, a proposed new law that is similar to the New York “Amazon” tax. Major corporations and trade associations in the music and electronics industry are involved in the coalition to lobby against this bill. Joining forces with them is our best chance of fighting this, as these players are much bigger and have more clout than our little industry.
CalTax reached out to me, the PMA and several other industry leaders, so now the affiliate marketing industry has our own joint coalition led by the PMA, our industry association. Our point person is Beth Kirsch, formerly a federal lobbyist.
Among the affiliate marketing coalition’s plans are letter writing campaigns, a lobby day at the capitol on March 31 and mobilizing people to testify before the Revenue & Tax Committee on April 13.
Rebecca at the PMA asked me to re-blog this, so here are more details and a call to action for anyone in CA to get involved to help fight this important fight.
The Fight Against California Assembly Bill 178 California Bill 178 threatens to change the performance marketing playing field. If you are a publisher or agency whose business is in California, your livelihood is at risk.
This bill, copying a similar one in New York, unfairly categorizing publishers as sales presence for out-of-state advertisers. This means taxes will be levied on out-of-state advertisers, potentially causing them to shut down their publisher relationships in the state (it happened in New York). Learn more at The Performance Marketing Alliance.
With your help, we have a great chance to kill this bill: the PMA is working with the California Chamber of Commerce and the California Taxpayers Association lobbying groups to fight this bill. These groups have successfully killed similar bills in the past, but the difference now is the precedent set by New York state. They believe the only way this bill can be killed is to have a coordinated grass-roots effort that demonstrates the devastating effect this bill will have on performance marketers in California.
With the support of CalChamber and CalTax, PMA is launching a coordinated grass-roots campaign that targets state legislature representatives. We are developing an attack plan that includes sample letters, fact sheets, congressional contacts by zip code, and a “Visit Sacramento” day, to put faces in front of decision makers.
First step: The PMA is extremely fortunate to have the support and experience of Beth Kirsch, a well known industry leader who was formerly a federal lobbyist. She is leading our effort, but we need your help. We are looking for California performance marketers to get involved. The most seriously impacted are California publishers and OPMs.
We don’t have much time – we have until March 31st to make an impact.
As we learned from our colleagues in New York, the passage of this bill could have devastating effects on California performance marketers. If this passes in California, it virtually assures a firestorm of adoption by other states, which could devastate our entire industry. If we beat this bill, it will severely limit the adoption in other states.
Email me (rebecca AT performancemarketingalliance.com) if you are interested in helping with the fight. At the very least, please forward this link to your Californian friends.
For background information on this bill, please read this post.
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#1 Help us Lobby Against CA AB 178 - Affiliate Sales Tax - 5 Star … « Niche Socializer Review and Bonus wrote on Friday, March 20th, 2009:
[...] Go here to see the original: Help us Lobby Against CA AB 178 – Affiliate Sales Tax – 5 Star … [...]
#2 Affiliate Marketing Blog wrote on Friday, March 20th, 2009:
I hope Peter Bordes is right on this one about being about to stop it dead in it’s tracks.
Things are looking pretty scary lately. Every state is out for penny grabs, it seems!
Will visit the site now.
#3 Can Affiliate Marketing in California be Saved? wrote on Friday, March 20th, 2009:
[...] Help us Lobby Against CA AB 178 – Affiliate Sales Tax [...]
#4 Can Affiliate Marketing in California be Saved? | Affiliate Marketing Blog by Shawn Collins wrote on Friday, March 20th, 2009:
[...] Help us Lobby Against CA AB 178 – Affiliate Sales Tax [...]
#5 Karen Garcia wrote on Friday, March 20th, 2009:
If you are able to attend, we are organizing a Lobby Day at the California State Capitol on March 31st to meet face to face with representatives. Please contact me via email (karen [at] gtomanagement.com) or Brook Schaaf (brook [at] schaafco.com) so we know to expect you.
#6 Linda Buquet wrote on Friday, March 20th, 2009:
Thanks Karen! I hope some affiliates can show up for Lobby Day.
#7 PrepaidWirelessGuy wrote on Friday, March 20th, 2009:
I’m having trouble locating the specific details about this bill. Can someone share a link?
Thank you!
#8 TheSpew - Episode 2: CA AB178 for Dummies wrote on Friday, March 20th, 2009:
[...] Affiliates Forum on ABestWeb Performance Marketing Alliance’s Campaign to Fight AB178 5 Star Affiliate Programs Amazon’s Line in the Sand Affiliate Taxation: Time to Fight Back Cal-Tax Analysis: Sales and [...]
#9 Linda Buquet wrote on Friday, March 20th, 2009:
PrepaidWirelessGuy you can find out everything about the bill at the PMA.
#10 TheSpew-Episode 2: California AB178 for Dummies #advertisingtax — MissyWard.com wrote on Friday, March 20th, 2009:
[...] Affiliates Forum on ABestWeb Performance Marketing Alliance’s Campaign to Fight AB178 5 Star Affiliate Programs Amazon’s Line in the Sand Affiliate Taxation: Time to Fight Back Cal-Tax Analysis: Sales and [...]
#11 TheSpew-Episode 2: California AB178 for Dummies #advertisingtax | AffiliateCarnival wrote on Friday, March 20th, 2009:
[...] Affiliates Forum on ABestWeb Performance Marketing Alliance’s Campaign to Fight AB178 5 Star Affiliate Programs Amazon’s Line in the Sand Affiliate Taxation: Time to Fight Back Cal-Tax Analysis: Sales and [...]
#12 Arguments Against CA’s New Sales Tax Bill Targeting Affilaite Marketers | R3R Internet Marketing & Consulting wrote on Friday, March 20th, 2009:
[...] 5 Star Affiliate Programs Topics: affiliate marketing, california « I’m Not a Virtual Assistant, But I Can Tell You How to Find a Good One [...]
#13 Important Links | Stephanie Lichtenstein wrote on Friday, March 20th, 2009:
[...] of Resources: ABW – Affiliate Tax Forum GAN – Sales Tax Legislation PMA - Campaign to Fight AB178 5 Star – Lobby Against CA AB 178 Amazon - Line in the Sand Affiliate Taxation -Time to Fight Back The Spew Podcast – California [...]
#14 Meeting with Lawmakers to Fight Affiliate Tax wrote on Friday, March 20th, 2009:
[...] better. Read the bill and any other information about it. Check out the forums – ABestWeb.com and 5 Star Affiliate Programs. There is also a Facebook group. And Melanie Seery’s Affiliate Voice. You can also find detailed [...]
#15 Pyzilla wrote on Friday, March 20th, 2009:
This tax isn’t an “affiliate tax.” It looks like only the advertisers get taxed when they make a sale.
You wrote, “If this passes in California, it virtually assures a firestorm of adoption by other states, which could devastate our entire industry.”
How would it devastate the affiliate industry if all states adopt the tax? Affiliate marketers won’t get taxed on sales, only the companies who are selling the products.
#16 Linda Buquet wrote on Friday, March 20th, 2009:
Pyzilla this is an anti-affiliate tax. In these new tax bills affiliates who are independent business owners are looked at as if they were an extension of the merchants company, creating a nexus which would force the merchant to pay sales tax if they keep a relationship with their affiliates. Merchants DROP affiliates in order to avoid having to pay the sales tax, so affiliates lose income.
#17 Rucksack Bag wrote on Friday, March 20th, 2009:
People have got to stand together and firm on this other wise we don’t stand I chance, I think I’ve recently heard that Texas are doing something similar