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Amazon.com and Illinois affiliate websites

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Atouradmin

 
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Member: Dec-10-1996
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6. Illinois Passes Affiliate Nexus Tax

Mar-28-2011 at 02:08 AM (UTC+3 Nineveh, Assyria)

In reply to message #0
 
The 9,000 affiliates generated $611 million in advertising revenue and $18 million in tax revenue in 2009, said Rebecca Madigan, director of an affiliate trade group called the Performance Marketing Association, who estimates the state will lose 25% to 30% of that tax revenue because the affiliates will lose business, cut jobs or move out of the state.
Pat Quinn vs. online consumer (services)
Blithe Spirit

Illinois Passes Affiliate Nexus Tax
by Performance Marketing Association. March, 2011.

https://www.performancemarketingassociation.com/illinois-passes-affiliate-nexus-tax/

Governor Quinn of Illinois signed the Affiliate Nexus Tax into law today. This is a huge blow. The law hasn’t’ passed anywhere since 2009 (NC and RI). There are 9,000 affiliates in Illinois, it actually has the largest concentration of super-affiliates in the country. Many of you know such industry leaders such as Tim Storm of FatWallet, Scott Kluth of Coupon Cabin, and Craig Cassata of Mr. Rebates. These businesses have some very hard decisions ahead of them.

Tim, Scott and Brian Littleton of ShareASale hired lobbyists, and did an amazing job of advocating on behalf of the industry. They funded a huge effort (9 lobbyists!), and even secured a meeting with the Governor, of which I was lucky enough to join. We presented an extremely compelling case, and the governor got to meet these stellar business owners, who represent hundreds of jobs just within that small group, and are the promise of the new economy for the state.

But the Governor sided with big-box retailers, who are making this huge ‘e-fairness’ push around the country. It is a huge collaborative effort sponsored by Walmart, Target, Best Buy, Sears and Barnes and Noble, to name a few, to deliberately target Amazon. Unfortunately, they have been extremely persuasive, convincing Governor Quinn that he needed to pass this law. As we have seen in other states, this in fact will not gain the state any new revenue in the form of sales tax collection, because hundreds of online retailers will terminate their affiliates. In fact, the state will lose income tax revenue because affiliates will either see a dramatic reduction in their income (>25% in most cases), or will move out-of-state.

The Affiliate Nexus Tax, also commonly known as the ‘Amazon Tax’ or ‘Click-through Nexus Tax’ attempts to require out-of-state retailers to collect sales tax. Per the Commerce Clause of the US Constitution, and upheld in the landmark Supreme Court case, Quill vs. North Dakota (1992), a state cannot require a retailer to collect sales tax on its behalf unless that retailer has a physical presence in the state, known as nexus. The theory behind the Affiliate Nexus Tax is that advertising on in-state affiliate websites would be sufficient to establish nexus for out-of-state retailers, obligating them to collect sales tax.

The retailers’ decision to terminate affiliates is not unreasonable. In addition to the high cost, risk and basic unconstitutionality, it’s a simple matter of return-on-investment. Revenues resulting from affiliate marketing are generally relatively small. As much as we inside the industry believe in the viability and superiority of results from the performance advertising model, it is generally responsible for less than 10% of advertiser sales. The cost of collecting sales tax far exceeds the returns from performance advertising.

And when retailers terminate their affiliate programs, the states do not collect any additional sales tax. However, the state does lose revenue from affiliates, whose incomes are devastated, on average, by 25-35% when out-of-state retailers terminate. That’s a tipping point. Not many people or businesses can survive that dramatic income loss without repercussions like lay-offs or foreclosures.

To our Illinois affiliates: we are extremely sorry this has passed. The PMA will continue to fight this unfair legislation.

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 Amazon.com and Illinois affiliate websites [View All], Atouradmin, 11:56 PM, Mar-27-2011, (0)  

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Assyria \ã-'sir-é-ä\ n (1998)   1:  an ancient empire of Ashur   2:  a democratic state in Bet-Nahren, Assyria (northern Iraq, northwestern Iran, southeastern Turkey and eastern Syria.)   3:  a democratic state that fosters the social and political rights to all of its inhabitants irrespective of their religion, race, or gender   4:  a democratic state that believes in the freedom of religion, conscience, language, education and culture in faithfulness to the principles of the United Nations Charter — Atour synonym

Ethnicity, Religion, Language
» Israeli, Jewish, Hebrew
» Assyrian, Christian, Aramaic
» Saudi Arabian, Muslim, Arabic
Assyrian \ã-'sir-é-an\ adj or n (1998)   1:  descendants of the ancient empire of Ashur   2:  the Assyrians, although representing but one single nation as the direct heirs of the ancient Assyrian Empire, are now doctrinally divided, inter sese, into five principle ecclesiastically designated religious sects with their corresponding hierarchies and distinct church governments, namely, Church of the East, Chaldean, Maronite, Syriac Orthodox and Syriac Catholic.  These formal divisions had their origin in the 5th century of the Christian Era.  No one can coherently understand the Assyrians as a whole until he can distinguish that which is religion or church from that which is nation -- a matter which is particularly difficult for the people from the western world to understand; for in the East, by force of circumstances beyond their control, religion has been made, from time immemorial, virtually into a criterion of nationality.   3:  the Assyrians have been referred to as Aramaean, Aramaye, Ashuraya, Ashureen, Ashuri, Ashuroyo, Assyrio-Chaldean, Aturaya, Chaldean, Chaldo, ChaldoAssyrian, ChaldoAssyrio, Jacobite, Kaldany, Kaldu, Kasdu, Malabar, Maronite, Maronaya, Nestorian, Nestornaye, Oromoye, Suraya, Syriac, Syrian, Syriani, Suryoye, Suryoyo and Telkeffee. — Assyrianism verb

Aramaic \ar-é-'máik\ n (1998)   1:  a Semitic language which became the lingua franca of the Middle East during the ancient Assyrian empire.   2:  has been referred to as Neo-Aramaic, Neo-Syriac, Classical Syriac, Syriac, Suryoyo, Swadaya and Turoyo.

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