NYAffiliateVoice

It seems like the big news comes from the small state of Rhode Island. Rhode Island Internet tax is now a reality. On Tuesday, the Governor of Rhode Island signed the budget bill containing the changes that expand the nexus definition.

2 44-18-15. “Retailer” defined. — (a) “Retailer” includes:
 (1) Every person engaged in the business of making sales at retail, including sales at auction of tangible personal property owned by the person or others.
 (2) Every person making sales of tangible personal property through an independent contractor or other representative, if the retailer enters into an agreement with a resident of this state, under which the resident, for a commission or other consideration, directly or indirectly refers potential customers, whether by a link on an Internet website or otherwise, to the retailer, provided the cumulative gross receipts from sales by the retailer to customers in the state who are referred to the retailer by all residents with this type of an agreement with the retailer, is in excess of five thousand dollars ($5,000) during the preceding four (4) quarterly periods ending on the  last day of March, June, September and December. Such retailer shall be presumed to be soliciting business through such independent contractor or other representative, which presumption may be rebutted by proof that the resident with whom the retailer has an agreement did not engage in any solicitation in the state on behalf of the retailer that would satisfy the nexus requirement of the United States Constitution during such four (4) quarterly periods.

As you can see the wording is quite similar to the NY version. That would leave me to believe that a solution similar to the NY solution would work.  I urge affiliates from Rhode Island and merchants to examine this possibility.

I offer my help. I do so because I remember what it was like to see my business destroyed. I have been down this road and will gladly help make your voyage a little easier.

I also do this because we are all in this together.

I offer you my Affiliate Voice, because that is the right thing to do.

Just a short update on California. According to a short article in the Los Angeles Times Blog, Governor Schwarzenegger has vetoed the Internet tax.  The article also quotes Overstock as stating they will reinstate California affiliates. Let’s just hope the veto sticks.

They have also vowed to terminate affiliates in any state that passes new nexus rules that would require them to collect sales tax.

You can read the article at the LA Times Blog

Late yesterday, Hawaii’s Governor Lingle  notified legislators that she may veto HB1405. This action is required, she must give at least ten days notice. I am unsure why she had to wait until this late time to indicate her intent to veto, the bill has been sitting on her desk since May 11. This latest news just adds to the confusion for everyone. The law was supposed to take effect today. Affiliates from Hawaii have been removed from several large programs already.

In my opinion, affiliates from Hawaii should continue to work on the Governor and on Legislators as they may be able to override in the event the Governor follows through. Continue to prepare your sites; identify vulnerable merchant relationships and find replacements.

Merchants should consult their attorney to find out what it means to them. Should they collect sales tax as indicated in the law? Or does the Governor’s statement that she may veto put the law in limbo?

While this all unravels in Hawaii, I suggest that every affiliate in every state make note of all the events of the last few days. Remember what happened to NY affiliates last year. Then adjust your approach to business accordingly.

CSN Has chosen to terminate affiliates from Hawaii, North Carolina and Rhode Island with less than a day’s notice.

Last year we listened to apologies over the last minute decision. It was blamed on the swiftness of the bill and not understanding the bill.

This year as we face similar legislation in several states we are again greeted by a last minute decision. What have we learned?

Last year we asked for communication, let us know, give us a warning we might be terminated so we could prepare; so we could have a plan.

We didn’t get it last year and we didn’t get it this year. Different states, different affiliates but the same treatment.

There was no lesson learned.

I am angry, disappointed and sad.  I am also  truly dismayed at how little has been learned from last year and how little has changed. 

Lesson has not been learned.

Last minute terminations are pouring into the emails of affiliates in Hawaii, North Carolina and Rhode Island.

Last year everyone blamed day before terminations on  the lack of information or on the speed of the legislation.

Those were just convenient excuses.

Silence from others continues to be deafening.