California Affiliates will be Terminated!

California is about to adopt the irrational “affiliate tax” law. Stores are starting to warn their California affiliates, that they will be terminated once the start date of this potential new law is confirmed. All super affiliates will leave California so they can continue feeding their families. California will loose their typically high income tax, property tax and sales taxes. Out of state stores will continue to sell to California residents without collecting the sales taxes. Biggest looser: California. Following is one of these warning letters:

Hello Shopbop California Affiliates,

Shopbop has worked with many California residents through Commission Junction. Unfortunately, a potential new law that may be signed by Governor Brown compels us to terminate this program for California-based participants. It specifically imposes the collection of taxes from consumers on sales by online retailers – including but not limited to those referred by California-based marketing affiliates like you – even if those retailers have no physical presence in the state.
We oppose this bill because it is unconstitutional and counterproductive. It is supported by big-box retailers, most of which are based outside California, that seek to harm the affiliate advertising programs of their competitors. Similar legislation in other states has led to job and income losses, and little, if any, new tax revenue. We deeply regret that we must take this action.

As a result, we will terminate contracts with all California residents that are marketing affiliates of Shopbop through Commission Junction as of the date (if any) that the California law becomes effective. We will send a follow-up notice to you confirming the termination date after the California law is enacted. In the event that the California law does not become effective before September 30, 2011, we withdraw this notice and this termination will not become effective. As of the termination date, those California residents will no longer receive advertising fees for sales referred to Shopbop. Please be assured that all qualifying advertising fees earned on or before the termination date will be processed and paid in full in accordance with the regular payment schedule.

You are receiving this email because our records indicate that you are a resident of California. If you are not currently a resident of California, or if you are relocating to another state in the near future, please change the address associated with your Commission Junction account for potential reinstatement as a Shopbop marketing affiliate.

To avoid confusion, we would like to clarify that this development will only impact our ability to work with California marketing affiliates, but will not affect their ability to purchase from Shopbop.com.

We have enjoyed working with you and other California-based participants and, if this situation is rectified, would very much welcome the opportunity to re-open our Commission Junction program to California residents.
Regards,
Shopbop

 

I feel sorry for my fellow California affiliates. Until our politicians understand how the web works, I sometimes wonder if super affiliates will all have to expatriate to the likes of the Bahamas to continue operating.  Oh well, the Bahamas ain’t that bad 😉

This is proof our politicians are in over their heads.

Reference:  PMA Press Release: CA about to implement nexus tax – effective immediately