Earlier this morning the Performance Marketing Association has made a blog post dedicated to the recent media coverage on the subject of affiliate nexus tax. Funny how it is, but I had a closely related idea in mind for my today’s blog post as well. Related, but not identically the same. I blogged a lot on the subject of the affiliate / advertising tax last year, but haven’t written much on it in 2011. Main reason being that there is not much to add: state governments that face budget deficits predictably turn to it as a “solution” to their problems failing to understand that, in reality, a step like this harms businesses, causes more job losses, and doesn’t guarantee additional income into their state’s budget at all.
As of today, the affiliate nexus tax bills are being proposed in 17 states. Last week (on Thursday, March 10, 2011) the state of Illinois (home state of such affiliate marketing companies as ShareASale, FatWallet, Coupon Cabin, Mr. Rebates, and thousands of smaller ones too) ratified a bill like this, becoming the first state to do it since 2009 (when Rhode Island and North Carolina passed such laws).
Much has been written on the affiliate (or so-called Amazon) tax since last Thursday. Today I’d like to bring you the 10 articles that caught my attention. Every one of them has important information, and when treated cumulatively, all 10 assemble into an interesting jigsaw puzzle. I hope you will find them of interest as well.
Here is my list (the order is merely chronological):
1. The Illinois Affiliate Tax is Passing Today — Author: Scott Jangro of AffBook.com
2. Governor Quinn Abolishes Affiliate Marketing in Illinois — Author: Brian Littleton of ShareASale
3. Advertising Tax: Education, not Legislation — Author: David Lewis
4. CouponCabin.com Comments on Gov. Quinn Signing Internet Tax Bill — Author: CouponCabin.com
5. Illinois Gov. Quinn Flaunts “Fairness” in Passing Nexus Tax, Cuts off Nose to Spite Amazon — Author: Angel Djambazov of ReveNews.com
6. Overstock’s Informational Letter to Runner [PDF] — Author: Mark J. Griffin of Overstock.com
7. The Senselessness of the Illinois Legislation — Author: Rebecca Madigan of Performance Marketing Association
8. Indiana and the Advertising Tax — Author: Tricia Meyer of Sunshine Rewards
9. Wal-Mart is Behind Affiliate Taxes: Hurting Small Businesses — Author: Pace Lattin of OfferVault
10. Amazon’s Affiliates are not Salesmen — Author: Peter Hamilton of HasOffers
If I’ve missed an important article that you have enjoyed, please do post a link to in the “Comments” area below.
Do you know which 17 states are considering the nexus tax?
Cathy, see the PMA’s blog (they have all updates under the “State Legislation” category)
Also there’s a Map of Nexus Legislation here, and other good resources on the subject at the Affiliate Advocacy‘s site.
Looks like that Nexus Map is out of date… You can view a more up to date version on my post. – http://www.hasoffers.com/blog/amazon-affiliates-not-salesmen-nexus/
thanks for the mention Geno! And if you’re reading this, make sure you join a PMA group so you can help prevent this in your state.
Thanks Geno and Peter!
Any time. And yes, Peter, thank you for chiming in.