Fight the Internet Advertising Tax
Internet Marketing Industry Unite! Fight the Internet Advertising Tax
The entire ecosystem of online marketing is being attacked state by state with the rollout of the internet advertising tax that affects affiliates, publishers, merchants, affiliate networks, service providers and more.
The state tax attack started last year in New York: “OverStock Files Lawsuit w/ Supreme Court to Fight New York Tax Law” and has now started to spread rapidly in many other states like CA, CT, FL, MN, IL ( to name a few). This ill conceived tax that has been called unconstitutional my Amazon and other companies fighting it. The tax bill started directly attacking the affiliate marketing industry by creating a nexus, meaning that affiliate programs would be charged state taxes for transactions generated and treated as if they were physical store fronts.
Instead of creating more revenue, it has done the opposite as internet retailers in these states have been shutting down their programs. In New York State over 100 programs were shut down affecting approximately 3,400 affiliate marketers. The Tax is now threatening to rapidly spread to other states and cause the same negative effect hurting many affiliates and small businesses. One of the key issues is that state legislators do not understand the ecosystem of affiliate marketing and how this current tax structure causes a much larger negative ripple effect across the entire industry.
There is no way for people outside the industry to get a clear picture or understanding of the tax’s impact because there is little data or rese about affiliate marketing’s intricate complexity. this led to the recent formation of the Performance Marketing Alliance and the Affiliate Voice Association.
It is very important that our community understand the reach and gravity of this tax as it can literally wipe out hundreds of millions of dollars in industry revenue and even affect shareholder value of public internet media & marketing companies. In it’s current form it does more harm than good, and in fact, appears to create less tax revenue and instead sucks more income out of our already ailing economy. It is hard to get a clear picture as there has not been any total impact study done by state or federal government.
THESE STATE TAXES MUST BE STOPPED NOW
There is an industry-wide call to action. The entire online marketing community is coming together to fight the internet advertising tax at state and federal levels. It is very important that we all participate in this ground swell and collaborate before it’s too late. No matter who you are, you can make a difference by letting your voice be heard in your state.hThe affiliate marketing segment can help make the most impact as states are very concerned about not hurting small businesses. On an aggregate basis the affiliate marketing channel is estimated to be $10 billion in revenue.
The Performance Marketing Alliance is now at the center of a grass roots movement working on behalf of the affiliate marketing industry. The PMA has real-time information and tools you can use in each s tate to make a difference such as individual and group form letters, legislators information and more.
This coalition is being coordinated by Google’s state policy counsel, and includes ActOnline, Amazon, AOL, Comcast, DLA Piper, eBay, Microsoft, TechAmerica, and Yahoo. The intent is to pool resources and intelligence from all these companies’ lobbying efforts, to make sure we all have up-to-date information, and the most effective coverage. Sometimes house reps need to be targeted, sometimes Senators, other times it is certain committee members, and their guidance will help us direct our efforts.
Make sure to follow the PMA and also push this information out into your community through your blogs, Twitter, Facebook forums etc. We will be posting coverage and sending targeted messaging to our MediaTrust partners who are in the states that are in need of affiliate letters, calls and meetings with local legislators. When Twittering information out make sure to use #advertisingtax
Here is a list of resources to follow and people who are actively working together to fight and make a difference
PMA Performance Marketing Alliance Association Blog :: Twitter :: Facebook
Affiliate Voice Association Site :: Twitter
NY Affiliate Voice :: Blog
5 Star Affiliate programs blog
Revenews Blog
lisapicarille.com Blog :: Twitter
stephanielichtenstein.com Blog :: Twitter
Fight Against the #AdvertisingTax :: Facebook Group
44 Comments, Comment or Ping
DaronBabin
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Apr 13th, 2009
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Apr 13th, 2009
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Apr 13th, 2009
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Apr 13th, 2009
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Apr 13th, 2009
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Apr 13th, 2009
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Apr 13th, 2009
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Apr 13th, 2009
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Apr 13th, 2009
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Apr 13th, 2009
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SeanDonahoe
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Apr 13th, 2009
Peter Bordes
There is also a Facebook CAUSE GROUP you can join and invite people into to join and spread the word
http://apps.facebook.com/causes/259129?m=370a5b0b
Stop Unfair Internet Marketing Taxes (CA, NY, CT, MN, HI, TN, …)
Do not let the politicians ruin one of the few success stories in the economy!
See Extended Info
Positions:
1. Internet marketing taxes will devastate small, entrepreneurial businesses
2. Internet marketing taxes will create an uneven and unfair playing field
3. Internet marketing taxes will harm a growing sector of the new economy
Apr 13th, 2009
bhidon
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Apr 13th, 2009
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Apr 13th, 2009
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Apr 13th, 2009
MediaTrustJenna
Fight the Internet Tax that threatens our industry. Let your voice be heard. http://bit.ly/MovzC
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Apr 13th, 2009
mediatrust
What can you do to help fight the Internet Advertising Tax?: http://ping.fm/rqWnF
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Apr 13th, 2009
hot_linkz_test
http://bit.ly/R3tZB – Internet Marketing Industry Unite! Fight the Internet Advertising Tax | Mediatrust Blog
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Apr 14th, 2009
pmalliance
Internet Marketers Fight the Internet Advertising Tax http://tinyurl.com/cnfuz3 #advertisingtax
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Apr 14th, 2009
John Beck Property Vault
Your post is awesome and I am going to add it on my website because recently I have started a small business of internet marketing. This post will help me in expanding my knowledge about Internet Marketing.
May 29th, 2009
peter bordes
John thank you. I am very pleased you found this info helpful. its very important we all work together and get this information out to our internet marketing community. this is very serious and can effect everyone in the industry. Thank you for posting this info on your site.
This is a very good update article in the SFgate.com site http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/05/16/INH117IO8E.DTL
it really helps put all the pieces together as to why this tax is very ill conceived and bad for online marketing and business growth.
Jun 1st, 2009
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