Recap 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 MoreCafepress Shows No Mercy to NY Affiliates
Yet another merchant has washed their hands of NY based affiliates. I just received an e-mail from Cafepress:
As you may know, the State of New York recently enacted new legislation that addresses tax registration, collection and remittance, which challenges the CafePress affiliate business model.
Due to mounting uncertainly over these new laws we will no longer be able to support affiliates residing in the State of New York, effective July 1, 2008.
While CafePress has no tax nexus in any states other than California, Nevada and Kentucky we feel it wise to discontinue our affiliate business in New York State at this time.
Regrettably, our hand was forced into making this difficult business decision, and we openly acknowledge the loss of income this means for our New York affiliate partners. Should circumstances around this law change we will eagerly reconsider this decision.
Effective July 1, 2008 CafePress affiliate agreements with all New York residents will be terminated.
Please let me know if you have any questions.
Of course I’m not affected, but in an effort to stand tall with my NY brothers and sisters, I’m seriously considering not promoting this program anymore. Truth be told, I’ve never shown any sales with it as it’s just on some secondary web properties, and I do love their services. I haven’t reached a personal decision yet. So this makes me sad that they’ve gone this route. Alas, poor Cafepress, I knew them well.
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