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!