URGENT! California AB178 is BACK!
As forewarned, the “affiliate nexus” language has been added to the state’s budget in an effort to generate more revenue for California. So, we need support again! LinkShare sent out a letter to all affiliates on behalf of the PMA, and Commission Junction sent out one of their own. In part, the PMA email read:
You may remember the grass-roots campaign we waged in April, to defeat an anti-affiliate tax bill that would have a detrimental effect on affiliate programs. Even though we defeated that bill, it has been revived, in a desperate hope to help California’s budget crisis. The bill was originally defeated thanks to the affiliate community in California, who was responsible for convincing the sponsoring committee that this bill was a bad idea. Now it is time to repeat that stellar effort, because we have a few more people to convince.
So we need your assistance again! Below is a list of important California officials that need to hear from you that this is a BAD idea! Also below is the copy you can feel free to paste into the email you send to them! Some folks are going back to Sacramento today to do what they can, and unfortunately I won’t be able to join them this time. So I sent emails. I checked these against the website and they all seem accurate even though several of mine bounced back, so I’m also including a link to their website’s contact form. Note, however, that some won’t accept correspondence from an address outside their district, which I think is complete fail of the system, but that’s just me.
- Senator Lois Wolk – Senator.Wolk@senate.ca.gov – Contact Form
- Senator Darrell Steinberg – senator.steinberg@sen.ca.gov – Contact Form
- Senator Elaine Alquist – senator.alquist@sen.ca.gov – Contact Form
- Senator Roderick Wright – Senator.Wright@senate.ca.gov – Contact Form
- Senator Ronald Calderon – senator.calderon@sen.ca.gov – Contact Form
- Senator Gloria Negrete McLeod – senator.mcleod@sen.ca.gov – Contact Form
- Senator Lou Correa – senator.correa@sen.ca.gov – Contact Form
- Senator Denise Ducheny – Senator.Ducheny@senate.ca.gov – Contact Form
- Jennifer Kent (Gov. Schwarzenegger’s tax adviser; please address as “Ms. Kent”) – Jennifer.Kent@gov.ca.gov
Here is the email copy you can paste into the email. Remember to edit the parts I’ve italicized in red below. Commission Junction’s template can be found here.
Subject: OPPOSITION to Sales/Use Tax Nexus Bill (AB 178 Skinner)
Dear Senator [Insert Last Name]
I am a small business owner with a website, and I am in strong opposition to Sales/Use Tax Nexus Bill (AB 178 Skinner), which would require retailers that receive referrals from advertising on websites, such as mine, to collect sales tax in California.
I am opposed to this bill because it would substantially harm my small business by reducing a large source of revenue that I depend on to survive. This revenue results from providing advertising on my website on behalf of out-of-state retailers. [Describe briefly how your business model is set-up and what you contribute to the local economy.]
If retailers believe that doing business with me will result in their having to collect sales tax on all California sales, they likely will sever ties with my business, putting the viability of my business at risk. Such was the case in New York State where Overstock dismantled its affiliates program and hundreds of other business followed Overstock’s example. This left thousands of small and medium-sized affiliate businesses with a 50% loss of income.
Unfortunately, this bill is futile. If enacted, retailers will drop me as a partner, California won’t collect sales tax as a result – and my business will be devastated in the process.
For these reasons, I respectfully oppose this legislation.
Sincerely,
[Your Name]
Please be sure to spread the word to your fellow affiliates potentially affected by this bill!
Read MoreBreathe Easier, California Affiliates!
I had the pleasure and pain of driving up to Sacramento yesterday to sit in on the hearing for AB 178, which I’ve talked about before putting California affiliates in jeopardy. Lisa Picarille and I hopped into my car and made the drive up, and about 10 minutes away from our destination, we get the news that the hearing had been postponed. The bill has been changed to a two year bill. What does this mean, exactly?
Believe it or not, I couldn’t find a sufficient actual definition for what a two year bill is online, so I can only pass on what I was told in basic layman’s terms, which may be better anyway. Basically what this means is that the hearing has been postponed until January, when it will be up again to be heard in hearings. We were told by several seasoned lobbyists that if it’s not heard in January, this bill in this current incarnation will be dead. However, the issue won’t necessarily go away. We will need to keep an eye out for other bills to make sure language isn’t shoehorned into other bills that could affect affiliate livelihood and tax nexus, and we also have to pay attention in June when budgeting starts to make sure no strange budget items that could affect nexus show up.
This is a small victory and California affiliates can certainly breath easier for awhile, but it’s not over yet. We’ve won the battle but the war rages on. Of course, there’s a lot of blog coverage on the happenings of yesterday, so check out their points of view as well:
- Mr. Lewis Goes to Sacramento – David Lewis
- Calif. AB 178 on Hold for Now – Lisa Picarille
- California Hearing Postponed – that’s a good thing! – Rebecca Madigan
- No Hearing for California AB 178 – Shawn Collins
- Commission Junction’s Internet Retail Tax News
Affiliate Marketing Fanatics 5: Staring Down the Governator
Podcast: Play in new window | Download
Affiliate Marketing Fanatics – A Publisher (Mike Buechele) and an Affiliate Manager (Trisha Lyn Fawver) talk about all things Affiliate Marketing. From blogging to branding, social media to search, video and more!
We are a touch late with delivering last week’s show to you. I was out of my office away lobbying against California AB 178 on Tuesday and then at Web 2.0 Expo the rest of the week, so Mike and I took today to catch up on a few things. We start all business and devolve into my rant on the etiquette of booth staff at trade shows. So be sure to heed my words and stop, collaborate, and listen!
A few things we mention this week:
- My second job as a California lobbyist against AB 178
- Affiliate Voice: The Voice of the Affiliate Industry launched this week. Their president is Melanie Seery of NYAffiliateVoice.com
- Twitter dropped their auto-follow service, so we took a look at 3rd party apps like Tweet Later.
- Mike explored Max Banner Ads as an adserver for his blogs.
- A brief recap of the Web 2.0 Expo in San Francisco and the tools I found potentially useful: StartForce, Safari Books Online, and GooseGrade
- Another tech blog by our pals Sam Harrelson and Scott Jangro called Cloud39.com
- Shout outs: Stephanie Lichtenstein’s awesome work on the #advertisingtax organization and Facebook group, and Daniel M. Clark’s great help via Twitter.
This episode comes in at a mouth watering 52 minutes.
Read MoreRecap of Lobby Day Against CA AB 178
Yesterday I had the privilege of accompanying 9 of my fellow affiliate marketers to the California State Capitol building in Sacramento to help lobby legislators against the passage of California Assembly Bill 178.
I have to say on a personal level, this was my first trip to the Capitol, and the most involved I’ve ever gotten with politics in general. It was a pleasant experience overall. And yes, I got a little “star struck” for lack of a better term walking by Gov. Schwarzenegger’s office. I had to fight the urge to knock on the door and demand court!
Back to business. 10 of us were able to make it up, some coming from Southern California. We had appointments set for almost all day, so we split into two groups so we wouldn’t run the risk of running late or overcrowding offices. Our group had a few lack luster meetings with staff that really didn’t understand what we were talking about or weren’t really familiar enough with the bill to care yet. But we also had some good meetings with other staff members who were incredibly receptive to our message and offered us a lot of advice regarding how to go about the lobbying that we’re doing. Some even went so far as to call other offices we didn’t already have appointments with and help to make us appointments.
It was equal parts optimistic and pessimistic. While it looks like it’s going to be incredibly difficult to outright kill the bill because of the eagerness of the state to collect any income possible. Focusing on the message that it’s best to keep the bill as broad as possible in the definition keeps it as fair as possible. In a perfect situation the Streamlined Sales Tax Project to require the collection of sales tax across every state would make the playing field as fair as possible, but that’s already been in the works for almost a decade and doesn’t look promising to be enacted any time soon. So in the meantime, we do what we can.
You can still do what you can. Now that we’ve taken meetings at the capitol, feel free next week to take meetings in your district in California. The members will be on vacation and potentially available at their district offices. Staff will not be on vacation and will still be in Sacramento working, so if you weren’t able to join us under such short notice, feel free to schedule your own appointments and talk to the Assembly Members on the committee for Revenue and Taxation. The meetings were generally short, 15-20 minutes of a staff members’ time. We were able to leave behind the letter that Linkshare wrote in opposition along with the opposition letter from the Performance Marketing Alliance, co-signed by over 300 affiliates.
If you’d like copies of these documents for your own leave behinds materials and have the intention of taking a meeting either in the district offices or in Sacramento, please leave a comment and I’ll see how we can get those materials to you. Here’s information on the committee members to reach out to. If you live in their district, all the better (they prefer to hear from constituents whenever possible).
- The Committee for Revenue and Taxation: (916) 319-2098
- Charles M. Calderon (Chair) – Dem. 58th District
- Sacramento Office: State Capitol, P.O. Box 942849, Sacramento, CA 94249-0058, Phone (916) 319-2058
- District Office: 13181 N. Crossroads Pkwy, Suite 160, City of Industry, CA 91746, Phone (562) 692-5858
- Chuck DeVore (Vice Chair) – Rep. 70th District
- Sacramento Office: State Capitol Room #4102, Sacramento, CA 95814, Phone (916) 319-2070
- District Office: 3 Park Plaza, Suite 275, Irvine, CA 92614, Phone (949) 863-7070
- Jim Beall, Jr. – Dem. 24th District
- Sacramento Office: State Capitol, P.O. Box 942849, Sacramento, CA 94249-0024, Phone (916) 319-2024
- District Office: 100 Paseo De San Antonio, Suite 300, San Jose, CA 95113, Phone (408) 282-8920
- Joe Coto – Dem. 23rd District
- Sacramento Office: State Capitol, P.O. Box 942849, Sacramento, CA 94249-0023, Phone (916) 319-2023
- District Office: 100 Paseo De San Antonio, Suite 319, San Jose, CA 95113, Phone (408) 277-1220
- Diane L. Harkey – Rep. 73rd District
- Sacramento Office: State Capitol Room #4177, Sacramento, CA 95814, Phone (916) 319-2073
- District Office #1: 29122 Rancho Viejo Rd., Suite 111, San Juan Capistrano, CA 92675, Phone (949) 347-7301
- District Office #2: 300 N. Coast Hwy, Oceanside, CA 92054, Phone (760) 757-8084
- Fiona Ma – Dem. 12th District
- Sacramento Office: State Capitol, P.O. Box 942849, Sacramento, CA 94249-0012, Phone (916) 319-2012
- District Office: 455 Golden Gate Ave., Suite 14600, San Francisco, CA 94102, Phone (415) 557-2312
- Jim Nielsen – Rep. 2nd District
- Sacramento Office: State Capitol Room #6031, Sacramento, CA 95814, Phone (916) 319-2002
- District Office #1: 280 Hemsted Dr., Suite 110, Redding, CA 96002, Phone (530) 223-6300
- District Office #2: 1527 Starr Dr., Suite U, Yuba City, CA 95993, Phone (530) 751-8351
- Anthony J. Portantino – Dem. 44th District
- Sacramento Office: State Capitol, P.O. Box 942849, Sacramento, CA 94249-0044, Phone (916) 319-2044
- District Office: 215 N. Marengo Ave, Suite 115, Pasadena, CA 91101, Phone (626) 577-9944
- Lori Saldaña – Dem. 76th District
- Sacramento Office: State Capitol, P.O. Box 942849, Sacramento, CA 94249-0076, Phone (916) 319 – 2076
- District Office: 1557 Columbia St., San Diego, CA 92101, Phone (619) 645-3090
California Assembly Bill 178
Many in the affiliate marketing industry are aware of what happened last summer with the New York State affiliate tax, also known as the Amazon Tax. The state laws were amended to include affiliates as agents of the merchant, requiring the merchant to charge sales tax for purchases made to New York residents. As a result, many merchants took the easy way out and decided to drop all NY state affiliates from their programs. This resulted in an immense loss of revenue for several affiliates.
Unfortunately, several other states are following suit, most notably California, Hawaii, Minnesota, Tennessee, and Connecticut. The most pressing of which is California, looking to enact the new bill ASAP with a hearing scheduled for April 13th in Sacramento.
In layman’s terms, AB 178 changes the definition of a “retailer engaging in business in this state” to include any retailer that works with affiliates in this state where the gross receipts or sales prices is over $10,000 per year. Feel free to read the entire bill online here.
Being a California resident myself, I can tell you that this will have a huge impact on the affiliate marketing industry. One of the major affiliate networks, Commission Junction, is located in Santa Barabara. Several super affiliates are also based in California. As well, Amazon, one of the largest affiliate merchant programs out there, has already testified that they will drop all Hawaii affiliates if Hawaii’s legislation passes, so that can’t be good news for California or the other states.
This bill is short sighted and ill conceived, and we need the help of everyone in the affiliate marketing industry to fight it. A legislative day has been planned for next Tuesday, March 31st, where several of us are going to Sacramento to speak with legislators and their staff about the ill effects this bill will have. If you are interested in also participating, please feel free to email me at trisha [at] newedgemedia.com and I will gladly pass the information to the organizers.
Read MoreAffiliate Marketing Fanatics Episode 3: Twitter in a Tumblr with a splash of Gary Vaynerchuk
Affiliate Marketing Fanatics – A Publisher (Mike Buechele) and an Affiliate Manager (Trisha Lyn Fawver) talk about all things Affiliate Marketing. From blogging to branding, social media to search, video and more!
We’ve finally determined that the audio problems were due to my headset this week as I stole the stand alone boom mic from my husband’s computer and the sound is excellent. Third time’s the charm! So now you won’t have to listen to a bad recording for our quality content!
We jumped around a bit today and covered a lot, so this episode is longer than the last two clocking in at about 40 minutes. We talk a lot about Twitter and decided that we live most of our lives through Twitter. We also give some shout outs at the end, as I promised last week.
Show Links:
- TweepMe and the creator’s account being suspended.
- Still getting used to the new Facebook.
- A few more words about Gary Vaynerchuk and his SXSW video.
- WeFollow, a survey about Twitter, and the Twouble with Twitters (careful, the video is on autoplay).
- Sony made a deal with Google to enhance their Sony Reader line up (watch out, Kindle!)
For the sake of driving the point home, I talked more about the grass roots fight going on against California Assembly Bill 178, which is looking to do in California what the so-called Amazon Tax did in New York. Here are some links I mentioned and some from the March 3rd episode of Affiliate Thing:
- CAaffiliates.com ABestWeb forum
- Read the entire bill (Number AB 178)
- How to contact your California state law makers
- Comment on AB 178
- See the calendar for the California state legislature
