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

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.

I have received several emails alerting me that Amazon has sent their affiliates in Hawaii and North Carolina letters of removal from their affiliate program due to the pending Internet tax legislation.

In a copy of the email I received concerning Hawaii affiliates it reads in part:

But because the new law is drafted to go into effect July 1st, we will have to terminate the participation of all Hawaii residents in the Amazon Associates program on or before that day. After the termination day, we will no longer pay any referral fees for customers referred to Amazon.com or Endless.com nor will we accept new applications for the Associates program from Hawaii residents.

The reason for the fast termination is as I mentioned in a forum the other day. Terminations must be in effect prior to the day the law takes effect; otherwise nexus will be established.

With active pending legislation in Rhode Island , Tennessee and California and proposed legislation in other states I am sure more letters will be sent.

I expect there will be a lot of outrage and shock in the affiliate industry but there are still actions we can all take; actions we must take.

This is not a time to sit back. If your business is severely affected, realize that it can bounce back. You will need to adjust and you will need to work hard but do not give up.

I remember clearly my experiences of last year – and my business is still recovering.

Recent events have shown me that our industry is still not adequately prepared.