Amazon and the Performance Marketing Association take on New California Affiliate Tax
This week Amazon, along with the Performance Marketing Association, an industry group representing Affiliate and Performance Marketers announced that they would be pushing a voter initiative that would prevent a recent “Affiliate Nexus Tax” law that was passed earlier this month going into effect. This new law requires internet retailers located in any State to collect taxes, file paperwork and pay the State of California, but only if they are doing business with any affiliate in the State of California.
According to the Executive Director of the Performance Marketing Association, Rebecca Madigan, “The Affiliate Nexus Tax law was passed under a shadow of misinformation and powerful lobbying by aggressive retailers who used this legislation for competitive gains. The public needs to learn the truth and decide with their votes.”
This initiative has its detractors, including the Alliance for Main Street Fairness, which is funded in part by Wal-Mart. Spokesman Danny Diaz told the press that “They need to play by the same rules as everyone else.” Additionally, Target has promised to help fund the effort to prevent this initiative as it sees more and more of its revenues being sapped by internet retailers.
Sean McCormick, the CEO of Ifficient Interactive, an online marketing firm, claims that “Wal-Mart is facing the same challenges that have put tens of thousands small businesses OOB for over 40 years. Recently Amazon fired 10,000 Affiliates, if something isn’t done to stop Wal-Mart and the Affiliate Nexus Tax; I am deeply concerned that we can see over 100,000 jobs lost in already dire economic times.”
The Performance Marketing Association and Amazon have 90 days to collect enough signatures to put on the ballot.