GTO announces NexusAware
With the resurgence of tax legislation targeting affiliate marketing, there is a great need for affiliates to protect their own businesses and livelihoods. Business relationships that generate significant revenue for individuals, families, companies and non-profits are at risk.
While we still strongly feel that states need to band together in a unifed solution that ensures a level playing field, we can not stand idly by and watch as the incomes of our affiliate partners and friends are decimated by poorly considered legislation. To that end, we have created NexusAware.
NexusAware.com allows affiliates to search our database of over 5000 merchants by state or by name in order to check the merchant’s nexus status in any state.
While not fully comprehensive yet, we will continue to update and add information as it becomes available on new or existing programs. We are also adding category functionality.
For your convenience, we have included links to merchants websites as well as links to join the affiliate programs in the search results. Please note, NONE of the links on NexusAware is monetized. There are no affiliate links, no second tier referrals. This is a labor of love for us and we want everyone to feel free to contribute.
If you are a merchant and you want to be added to the directory or if you feel information is incorrect or has changed in regards to a particular merchant listed here, please contact us at info@nexusaware.com.
New Mexico HB 50 – New Internet Tax Bill
It’s that time of year again my friends…legislatures across the country are looking for ways to make up their budget shortfalls. Unfortunately, affiliate marketing is again squarely in their crosshairs. New Mexico HB 50 was introduced on January 15 by Democrat Eleanor Chavez and redefines the concept of nexus in New Mexico to include affiliate marketing relationships.
Bill excerpt:
A person with a business with no physical presence in New Mexico is presumed to be engaging in business in New Mexico and has nexus with the state for purposes of due process and interstate commerce if:
(1) that person enters into an agreement with a resident of the state under which the resident, for a commission or other consideration, directly or indirectly refers potential customers, whether by link or an internet web site or otherwise, to that person; and
(2) the cumulative gross receipts from sales by that person to customers in the state who are referred to that person by all residents with an agreement described in this subsection are in excess of ten thousand dollars ($10,000) during the preceding twelve-month period ending on June 30 of any year.
D. The presumption of nexus established in Subsection C of this section may be rebutted by proof that the resident made no solicitation in the state that would satisfy the nexus requirements of the United States constitution on behalf of the person presumed to be engaging in business in New Mexico.”
If you live in Ms. Chavez’ district, I would suggest getting in touch with her office and respectfully explaining how this sort of bill will negatively impact your business.
As I hear more information, I will continue to provide updates.
Happy Selling!
~Karen
Thanks to Melanie Seery from Affiliate Advocacy for the heads up!
Karen Garcia – ShareASale Performance Awards 2009 Winner!
Our very own Karen Garcia has been recognized by ShareASale for her efforts in defending our industry against the Advertising Tax in California. We couldn’t be more proud of her work as an industry advocate.
There were so many individuals involved in the effort and all worked very hard preparing information for and speaking to state legislators on several occasions. The battle is by no means over and Karen and the rest of the GTO Management team are ready to help.
Thank You Governor Schwarzenegger
I just received this amazing announcement from Governor Schwarzenegger’s office. Turns out that all of our hard work and persistance actually has paid off (even if they did end up blocking our emails last week, which frankly was incredibly annoying).
The fight’s not over…last night, the nexus proposal appeared in a new bill, ABX3 19, which is identical to SBX3 17, and it was passed by the Senate (24-14). It appears that our legislators are fond of playing the shell game, so we must continue to be vigilant in our efforts until a solid resolution is obtained.
GAAS:355:09
For Immediate Release:
Wednesday, July 1, 2009
Contact: Aaron McLear
Rachel Cameron
916-445-4571Governor Schwarzenegger Remains Committed to No New Taxes, Announces Overstock.com Will Continue to do Business in California
Following Overstock.com’s announcement that it will pull its affiliate advertising from California due to the legislature’s proposal to increase taxes and the announcements of other companies such as Amazon.com threatening to follow suit, Governor Schwarzenegger today reiterated his deep commitment to not raising taxes to solve our state’s budget deficit and announced Overstock.com will reinstate California-based internet affiliate advertisers:
“After passing the largest tax increase in California history, it makes absolutely no sense to go back to the taxpayers to solve the current shortfall – that’s why yesterday I vetoed the majority vote tax increase passed by the legislature. With unemployment at an all time high, we should be doing everything we can to – keep jobs and create jobs – in California. That is why my Administration immediately contacted Overstock.com when we learned of this news and, I am pleased to announce Overstock.com has reversed its decision and will continue to do business with affiliates here in California. I will continue to fight to keep jobs and businesses in California.”
California lawmakers proposed a tax on affiliate advertising and sent legislation to the Governor, but as promised he vetoed it because we cannot solve our budget deficit by raising taxes and driving businesses out of the state.
Overstock.com estimates its internet affiliate advertisers in California create millions of dollars in revenue.
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And the exodus begins…
Unfortunately, with the threat of the California budget hanging over their heads like Damocles sword, the first merchant has pulled their affiliate program from California.
According to David Lewis of Cashbaq.com, Overstock.com sent a boiler plate rejection letter out to their affiliates via CJ’s internal email this afternoon.
I’m sorry to see the impasse come to this, but Democratic legislators flat out refused to see the light here and as other large and small companies follow suit, we will simply see more money leaving the state.
I would urge affiliates that receive these sorts of removal letters to send them directly to your representatives and ask them point blank why they stood idly by and did nothing to protect your business, your income, and your families from financial devastation.
Click here to find your Assemblyperson and Senator.
**UPDATE**
Here is the full text of the “official” letter from Overstock that affiliates received tonight:
June 30, 2009
Dear Affiliate:
We regret to inform you that the North Carolina, Rhode Island, California and Hawaii state legislatures have or are about to pass unconstitutional tax nexus and collection laws in an attempt to force Internet retailers to collect and remit sales tax on all sales to residents of these states.
These legislative measures purport to establish a state tax nexus on the basis of contracts with local advertising affiliates, even when none exists under U.S. Supreme Court precedent. Overstock.com, Inc. (“Overstock”) has no tax nexus in any state other than Utah.
Due to the passage or eminent passage of these unconstitutional laws, Overstock regretfully must discontinue its relationships with all of its advertising affiliates in these states.
Accordingly, it is with reluctance that Overstock hereby gives notice of termination of your participation in Overstock’s Affiliate Program.
Any money owed to you, based on your advertising services prior to termination, will be paid in the normal course of business.
Overstock regrets that it has been put in this position. In the future should these laws be vetoed, declared unconstitutional, or repealed, we will cheerfully resume our former business relationship.
Respectfully,
Jonathan E. Johnson III
President
Overstock.com, Inc.
