Posted on February 11th, 2010 at 1:50 pm by Cari Birkner
In a post New York “Amazon tax” universe, several states have proposed analogous bills subjecting online marketers to state sales tax. This week, it appears affiliate marketers have emerged unscathed by proposed legislation in Colorado. Previously dubbed the “Amazon tax” in 2008, because of its court challenged effect on Amazon affiliates in New York state, this change in the rules makes an affiliate presence in a particular state sufficient for taxation.
Monday, online marketers in Colorado let out a sigh of relief when a last minute amendment to the state’s HB1193 bill removed language affecting affiliate marketers and changed the focus of the bill solely to the collection of use tax. Campaigning by trade associations and businesses alike helped to protect affiliate marketing jobs in the Centennial State. Prior to the amendment, longtime LashBack client Adperio was featured on Denver’s KDVR News defending the online ad industry’s livelihood. View clip.
Quite a bit of industry buzz has been generated concerning the bill, especially on Twitter trending topic #advertisingtax. Upon hearing news of the bill’s amendment, we sought Adperio Founder and CEO David Asseoff’s perspective, and he had this to say:
“The original version of HB1193 would have devastated Colorado’s affiliate marketing industry, as similar bills have done in other states. I am thrilled that Adperio, working with others in the affiliate marketing industry, implemented a grassroots approach to fighting the bill – from face-to-face meetings with lawmakers to social media outreach – which led to the bill being rewritten and references to affiliates being removed.“
At press time, the newly amended bill, sans affiliate language, was still awaiting approval in the Colorado State Senate. In the meantime, I’ll be publishing a guide for all states mulling over similar bills. A wealth of resources can currently be found on the Performance Marketing Association site.
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