Fighting the Advertising Tax in Sacramento

I wish I could tell you that we had an incredibly productive day in Sacramento, educating numerous state senators personally about affiliate marketing.  They all understood what we do and they all agree that adding language to tax bills that make affiliate partners consistute nexus for out-of-state merchants is not going to make the state any money and is a bad idea.

I wish I could tell you that.

Instead, I report back after going to Sacramento last Wednesday, May 12th, with some less-than-uplifting realities about our state government here in California.  Late last week, the Performance Marketing Association learned that there was a meeting on the 13th in CA senate subcommittee 5 to discuss adding affiliate nexus language to one of their pending budget bills.  It’s not yet back, officially, in the form of a bill in the CA senate or assembly, but just knowing that they’re discussing it is enough for us to try to go educate some lawmakers on what affiliate marketing is, why affiliates shouldn’t create tax nexus for merchants, and why the state won’t actually make the $1.7 million they think they will.

I was asked to join Lisa Picarille and up we went to the capitol, no appointments made due to the last-minute nature of the trip, with high hopes of talking to the three state senators sitting on the subcommittee and laying some education on them.  We knew that other affiliates and fighters in this advertising tax battle had previously met with Senator Denise Moreno Ducheny, the chair of the subcommittee and the state Budget and Finance committee, and had not had good luck in getting through to her, so we targeted her office first.  She was booked solid in meetings, but we were given a time to check back to see if one of her staff members had a small window of time to talk.

So we went on to the office of Senator Robert Dutton, who we’d heard was on our side.  We spoke with a nice staffer in his office who was very well versed on the affiliate nexus issue and assured us that Sen. Dutton opposed the language and that most the Republicans were probably on our side as well.  It was very nice to meet with someone who actually knew what we were talking about and understood the issue.  In the two previous times I’ve gone to Sacramento, we had uphill battles trying to explain affiliate marketing to blank-faced staffers, so his knowledge about the issue definitely allowed us to cut right to the chase.  He suggested some other people we talk to, some influential to the budget committee and subcommittee, and some already on our side that might be able to help in other ways.

Lisa and I then set out for Senator Alex Padilla’s office as it wasn’t yet time to check back in to see if Sen. Ducheny’s staff could talk to us.  We were unable to speak to the people Sen. Dutton’s office had recommended, but we spoke to the legislative director who was very interested in learning more and very interactive.  He asked us a lot of questions to better understand the issue, and was very interested in the information about Rhode Island not realizing the projected revenue from their version of the advertising tax and their consideration of repeal.  Rhode Island actually has a bill in play now, H 7071, set to repeal the “Amazon Tax” but it looks to be stalled and waiting for a proper hearing.  So as not to lose time, we quickly had the information emailed to him as we went about to other offices.

That’s kind of where the magic ended.  I have to say, I was feeling okay at that point that people were hearing us out.  I didn’t feel that any overly appreciated us being there as private citizens just wanting to spread some education and counter some mis-information being spread by the opposition, but they seemed willing to listen and comprehend.  We went to the budget committee office, and they weren’t that helpful.  The person we were looking for wasn’t there, and the people who were there told us we were pretty much crazy to attempt to see anyone without an appointment at this time of year.  What happened to PUBLIC SERVANTS making themselves available to the PUBLIC, hmm?  This served as a harsh reality (to me anyway) that our system is generally broken. We took a break, and after refreshing ourselves with some lunch, we headed back to Sen. Ducheny’s office to check in.

We arrived earlier than the time we were asked to come back, but since we had no one else to see it was worth a shot.  We were ushered into the office of a staffer who was, unarguably, the worst attitude and most combative of all the people we talked to that day.  She made me very glad I do not live in Sen. Ducheny’s district (40th District).  The staffer kept attacking affiliates for working with out-of-state retailers in the first place.  I tried to explain to her that, California being just one of 50 states, the “Buy Californian” attitude wasn’t a viable business option, but I got the distinct impression that she didn’t care.  She checked her cell phone multiple times while Lisa and I were trying to pleasantly and professional counter her unprofessional combative questions, which is just plain rude no matter what the situation is.  She kept asking us what we proposed the state do instead to fix the budget.  I wanted to tell her that it’s THEIR job to figure that out, not ours, but instead Lisa suggested some alternatives and tried to focus on the argument that the retailers will just drop CA affiliates, and the state won’t make this money they think they’re going to make.

That being our last meeting of the day, it did leave a bad taste in my mouth about Sacramento and state politics and government in general.  I hope I can be of service throughout this fight until we’ve successfully killed the advertising tax, in all forms, here in California.  Until then… anyone have a million bucks we can hire a full time lobbyist with? 🙂