State of California is trying to pass the Affiliate Nexus Tax law. This must be some kind of a joke. I mean everyone knows that California has budget issues and is deep in debt, but this is NOT the solution. What are they thinking? LOL
Anyway, basically they are trying to collect sales tax from out of state merchants based on “nexus” that is being established between them and the affiliate marketer HUH?
Check out this video:
If this law gets passed then not only they are going to hurt the affiliates but also lose more income from state tax. The merchants most likely will terminate thier relationship with affiliates in California instead of complying with this ridiculous (stupid) law. The fact is that this law was integrated in NY, North Carolina and Rhode Island and those states publically admitted that they didn’t gain any additional tax revenue. But here is the real kicker, if some of those merchants did comply with this law they would need to lay off some of their workforce simply because all of a sudden they lose 25% of their revenue.
This is probably the worst and most ridiculous tax law I have ever heard about. Affiliate marketers don’t collect payments nor they know who the client is. They simply drive traffic to merchants and get paid a commission. They basically want to cut into our profits!
The affiliate marketing industry is growing rapidly and therefor getting a lot of attention. Anyone can start a website and just start cranking out content for profit and it seems like those “vampires” are trying to get their cut, which is not going to happen. If we just sit and do nothing they will keep passing these stupid laws, and pretty soon the costs are going to be very high hurting many small business owners.
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{ 4 comments… read them below or add one }
This law is a total bs. What else are they going to try to force on us the affiliates? The new economy is here to stay. The retailers need to adapt or die a miserable death haha
I hope they don’t pass this law. We are one of the top affiliates for a merchant that generates most of our income. If they terminated us from their affiliate program it would be terrible. This is crazy
So did it pass or didn’t it? They voted yesterday right? I can’t find anything saying yes or no…
The session ended without a signed budget so I guess they didn’t figure out yet. It’s not over yet though.