Unfortunately it appears the HUGE state of California could be next in line for anti-affiliate Nexus Tax legislation. It will be a very sad day for thousands of California-based affiliates if these bills pass. And it sounds like these bills are likely to pass and the law go into effect within the next 2 days.
I wish California would realize they are not HELPING the state economy but HURTING it! Any tax gains they think they will make, will be offset by the economic losses due to small and large affiliates businesses losing income (therefore paying less income taxes), having to layoff staff (putting more strain on state resources) and/or moving out of California so they can continue their businesses in more supportive states.
Yesterday the PMA made this foreboding announcement:
<strong>Andrew Shotland AKA @localseoguide just posted an image of the </strong><strong><a href="http://twitpic.com/5ipykr">Amazon California Associate Program termination notice</a>.</strong>
TheNextWeb reports:
Geno has some good advice for merchants as always here: <strong><a href="http://www.amnavigator.com/blog/2011/06/29/bad-news-from-california-affiliate-nexus-tax-law-on-the-threshold/">Bad News from California: Affiliate Nexus Tax Law on the Threshold</a></strong>
I wish California would realize they are not HELPING the state economy but HURTING it! Any tax gains they think they will make, will be offset by the economic losses due to small and large affiliates businesses losing income (therefore paying less income taxes), having to layoff staff (putting more strain on state resources) and/or moving out of California so they can continue their businesses in more supportive states.
Yesterday the PMA made this foreboding announcement:
<strong><a href="http://performancemarketingassociation.com/alert-ca-about-to-implement-nexus-tax-effective-immediately">ALERT: CA about to implement nexus tax – effective immediately</a>
Governor Brown of California has announced he has secured enough votes to pass his budget, including the Affiliate Nexus Tax and 2 related nexus bills: AB 153, AB 155 and SB 234. </strong><strong>The law will go into effect immediately upon signing, and he must sign before July 1st, 2011.</strong>
We are doing everything we can to block this from moving forward but we believe passage is imminent. If you are a California-based publisher, or an out-of-state advertiser, please seek immediate advise from a tax or legal professional.
<strong>Andrew Shotland AKA @localseoguide just posted an image of the </strong><strong><a href="http://twitpic.com/5ipykr">Amazon California Associate Program termination notice</a>.</strong>
TheNextWeb reports:
<strong><a href="http://thenextweb.com/industry/2011/06/29/amazon-just-terminated-the-associates-program-in-california-due-to-new-tax-law/">Amazon is terminating the Associates Program in California due to new tax law</a></strong>
Even though the bill has not yet been passed, Amazon is pulling the program preemptively in California. Apparently it believes that the bill will get passed and the new tax laws will go into effect. Amazon says that the bill is ‘supported by big-box retailers, most of which are based outside California, that seek to harm the affiliate advertising programs of their competitors.
Geno has some good advice for merchants as always here: <strong><a href="http://www.amnavigator.com/blog/2011/06/29/bad-news-from-california-affiliate-nexus-tax-law-on-the-threshold/">Bad News from California: Affiliate Nexus Tax Law on the Threshold</a></strong>