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!

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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

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There wasn’t a large amount of stuff going on this week, but what did go on was big news and somewhat exciting.  There’s some important issues going on and some dates to remember.

• Not one, but two keynote speakers have been announced for Affiliate Summit East 2009, August 9-11 in New York City.  Social media rockstar Chris Brogan will take the keynote torch during the traditional Monday slot, then Help a Reporter creator Peter Shankman will fill a new keynote spot Tuesday morning.  Very cool!
• I haven’t yet had a chance to write a recap myself, so here’s the recap of LinkShare Symposium West from the official LinkShare blog.
• Speaking of LinkShare’s Symposium, they’ve announced the dates for LinkShare Symposium East, including the Golden Link Awards.  For some reason it was not announced on their blog or website, but widely reported by other affiliate bloggers like Missy Ward.
• Speaking of affiliate networks, ShareASale has decided to lead a roundtable discussion on toolbars and setting standards to keep them within the ideals and ethics ShareASale has set forth.  There’s a lot of backlash about it on ABW, but I think people are jumping the gun - let’s see how the first discussion goes before making a solid judgment.

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