All affiliate marketers need to read this NOW - the tax man is coming for you

4 replies
I don't mean to come off as an alarmist nutjob but this is serious stuff that could really screw all of our businesses.

You may remember when New York state tried to tax amazon because there were affiliate marketers from NY selling amazon products.

***The result was that amazon and several other companies shut down all affiliate marketers living in NY.***

That effort by NY was stopped but California and several other states are now trying to do it. You can bet that if it passes in CA it will soon pass in other states too which might eliminate affiliate marketing as we know it.

If you're a CA resident please sign the petition here to stop this madness:
Performance Marketing Alliance Sign Group Letter to Oppose AB178

More info:
http://www.revenuetoday.com/newslett...cCampaign=6739

You can read the text of the bill here:
AB 178 Assembly Bill - INTRODUCED

Even if you're not in CA please see if there's anything you can do to spread the word. Also keep a watch out on your state too.

Minnesota, Wyoming and several other states are considering similar legislation. Keep your eyes open.


CA affiliates, we need to take action on this. After you sign the petition please call your state assembly person and tell them NOT to support AB178!

You can go here and click on the link on the left of the page which says "find my district".
The California State Assembly

I just spoke to my assemblyman's office (Paul Fong) and they were very interested and receptive. They asked me to also write a print letter stating my opinions. Please do the same...
#ab 178 #affiliate #affiliate marketers #affiliate marketing #california #coming #man #marketers #read #tax #taxes
  • Profile picture of the author Oracle_320th
    Governments always tax people, even though we do all the hardwork
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  • Profile picture of the author Darth Executor
    I don't get it. IMs still have to pay income tax, what exactly are they collecting? Sales taxes?
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  • Profile picture of the author mo-money
    From the bill:
    The Sales and Use Tax Law imposes a tax on the gross receipts from
    the sale in this state of, or the storage, use, or other consumption
    in this state of, tangible personal property.
    Currently if you're a company based in chicago, you pay taxes to illionis because that's where you're based.

    What these new laws are trying to do is say that since I am an affiliate marketer living in california, if I have an affiliate link on my website that sells a product for this company, then that makes the company have a presence in california and so the company has to pay taxes to california IN ADDITION TO THE TAXES IN THEIR HOME STATE.

    So of course that company doesn't want to pay double taxes so they don't allow any affiliate marketers in california to sell their products. That means every affiliate marketer in california is put out of business.

    Of course every company will make their own decisions. When that was going on in NY amazon and a bunch of other companies just closed down all the affiliate accounts of people/companies in NY.

    If they were willing to give up affiliate marketing in a high population state like NY then you can bet that smaller states are totally screwed too.

    Not to mention that if this passes in one state you can bet it will pass in a lot more which will in effect put affiliate marketers in those states out of buisness.

    Like I said... this is serious and scary stuff!
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  • Profile picture of the author Jackie Tulos
    I just read an article in the April issue of Maximum PC about this. They said in the article that it will be appealed. I think that the NY government needs to think about how it will set a precedent in the court for years to come.
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    Jackie Tulos
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