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If you want to continue doing business as an affiliate in Texas, you will want to read this... and show up at the Capitol building (for a hearing) with us, on Monday...
I know The Internet Marketing Party is all about mischevious fun and partying... but we won't be able to party if this bill passes... because as David Vogelpohl puts it: "If Texans are kicked out of affiliate programs because of tax nexus issues all that revenue (and jobs) will go to a different state!"
There will be a Ways and Means hearing in Austin on March 28, 2011, at 2pm.
Here is a link to the agenda: the affiliate nexus tax bills are up first:
We need two kinds of help: affiliates willing to testify, and affiliates willing to show up and fill the room.
If you are able to testify on this new date, please send an email to [masked]. We¹ll coordinate our testimony. As Scott was advised, dress like yourself (avoid a suit and tie, so you don¹t look like a lobbyist).
If you are testifying, your personal story is the silver bullet it is the main thing that beats these bills.
How long have you been in business? Why did you become an affiliate?
Describe your site in a very simple way, 1 sentence (you're a website that makes money from advertising placed on your site): who do you serve, target, specialize?
What has your growth been so far, and what is it projected to be?
How many employees do you have?
What will happen if this bill passes? What % of your advertisers do you expect to terminate you (out-of-state retailers)?
What happens then? What reduction in revenue? Do you have to move? Lay off employees?
Thank you for you support!
And Brook Schaaf notes: "The nexus tax will cause disruption in our space without increasing tax income for the state."
(IF you know of any affiliates in or around Austin, please forward them this information, have them join The Internet Marketing Party, so we can keep them informed about this and other information which affects them directly)
We don't yet know exactly what time, or room at the Capitol Building... but wanted to put this info in front of you so you could make plans to join us at some point on Monday, probably early afternoon (so plan for a "late lunch" in downtown Austin).
Here are some of the details about the Tax Bill (from Brook Schaaf, founder of The Performance Marketing Association (PMA)... RSVP now (and pass this page along to your Texas affiliate friends) so we can keep you informed as more details emerge:
Texas Affiliate Nexus Tax Bill Announced
On Tuesday, February 15, Texas introduced HB 1317, a New York-style affiliate nexus bill. This is likely in direct response to Amazon’s decision to shut down Texas warehouses (http://www.statesman.com/business/amazon-sues-texas-demands-tax-documents-1196837.html?cxtype=rss_ece_frontpage) to avoid sales tax.
We will need the help of Texas affiliate marketers to fight this bill. Please join the PMA's Texas Google Group (http://groups.google.com/group/pma-tx) to learn more on how you can get involved.
H.B. No. 1317
AN ACT relating to a presumption that certain retailers are engaged in business in this state for the purpose of the use tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section[masked], Tax Code, is amended by adding Subsections (d) and (e) to read as follows:
(d) For the purpose of this subchapter and in relation to the use tax, there is a rebuttable presumption that a retailer is engaged in business in this state if the retailer:
(1) enters into an agreement with a person who is a resident of this state under which the resident receives a commission or other consideration for directly or indirectly referring potential customers to the retailer by any means, including by a link on an Internet
website; and (2) during the previous four calendar quarters received at least $10,000 in cumulative gross receipts from sales to consumers located in this state who were referred to the retailer by residents under agreements described by Subdivision (1).
(e) The presumption under Subsection (d) may be rebutted by proof that the resident with whom the retailer has an agreement described by Subsection (d)(1) did not engage in any solicitation in this state on behalf of the retailer that would satisfy the nexus requirement of the United States Constitution during the period described by Subsection (d)(2).
SECTION 2. The change in law made by this Act does not affect tax liability accruing before the effective date of this Act. That liability continues in effect as if this Act had not been enacted, and the former law is continued in effect for the collection of taxes due and for civil and criminal enforcement of the liability for those taxes.
SECTION 3. This Act takes effect September 1, 2011.
Help TEXAS legislators see that they will be cutting their nose to spite their face if they allow this bill to pass. RSVP NOW!