California click-through nexus Affiliate Tax ABx1 28
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On July 1st 2011 Governor Jerry Brown signed the CLICK-THROUGH NEXUS BILL — or, the California Affiliate Tax – ABx1 28
Several other states have already passed similar CLICK-THROUGH NEXUS BILLS to collect sales tax on purchases over the internet.
In plain English, any affiliate (like OUR WEBSITE) that promotes products of other SELLERS could be liable for paying sales tax on those purchases.
As a result, SELLERS have terminated business in several states including California.
For example, AMAZON has terminated the Amazon Associates Program with California residents. As a result, individuals or websites (like OUR WEBSITE) in CALIFORNIA will no longer receive advertising fees for sales referred to Amazon.com
YOU – the consumer, will have to go directly to the SELLER like Amazon.com to make purchases.
BOTTOM LINE
As more states pass CLICK-THROUGH NEXUS BILLS the consumer will…
1) Have to go directly to the SELLER to make purchases.
2) May have to pay sales tax on purchases
(depending on sales tax laws in each state)
3) May have to pay higher prices for purchases to offset advertising costs
(and/or lawyer fees to sort out requirements of new laws).
There will be fewer websites promoting products (ie. Less consumer reviews, articles on products, price comparison by a neutral site).
In fact, our website will be removing several banners, links and articles from our website as we evaluate the impact of this new BILL.
Thank You
Wayne McDonald
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You can contact your senator by writing an e-mail or a letter, by calling, or by visiting [them].
http://www.senate.gov/reference/common/faq/How_to_contact_senators.htm
Performance Marketing Association
The Performance Marketing Association gives performance marketers a unified voice to address issues and challenges facing the industry, such as the “advertising tax” [click-through nexus bills] proposed in some states.
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