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Here's the Link
http://www.statesman.com/blogs/content/ … _onli.html
"The bill defines a taxable retailer as a business that brings in at least $10,000 a year or “enters into an agreement” with a Texas resident that receives a commission or “other consideration for directly or indirectly referring potential customers to the retailer by any means.” "
If this passes getting a Post Office Box in Oklahoma won't help. It's your physical presence in the state that triggers it. Once you file an Amazon 1099 with your Texas tax return, that will alert the state and Amazon will then boot you.
Affiliate Nexus Laws have been defeated in other states. If you want to beat it start now and work with the Performance Marketing Association.
Nelle, thanks for posting the link. It may be that I should take a trip down to Austin. I will also look at the Performance Marketing Association web site.
I just have a couple of questions:
1. There's no state income tax in Texas. Therefore one couldn't make the argument that the state will lose out on income taxes on affiliate revenue, should the affiliates disappear. I suppose the case could be made that the affiliates will lose a significant income stream which could have been spent in Texas -- not to mention that many, if not all of them will no longer have employment.
How would you pitch your case?
2. How does the comptroller's office know how much sales tax Amazon allegedly owes? Do annual reports from corporations break down their sales revenue figures state-by-state? And even if they did, could it tell the whole story?
Well, that was inevitable. I don't know how things are going to fare here in CT, Nelle. The state just announced that they are going after the largest tax hike in the history of the state. It's just unbelievable.
Just explain to them how they will lose tax dollars - not gain them. I showed my state rep a few of my 1099's and told him all the tax dollars related to this would go poof.
It's important to explain it's just not Amazon. That 90% of affiliate programs will cut off affiliates in these states.
I would show them how they would hurt small busines. Go online or ask the PMA to help. I'm sure that they have a packet or will help you prepare.
It would be helpful for you to at least get a list of Texas Hubbers and show them the impact it would have on them. I think that it's most effective when small business people, like us, talk to our state reps. It makes them see it for what it is.
Right now they think it's little Main Street store versus the big bad online retailer. You need to put a little guy face on the affiliate.
But just keep making the point that they won't gain anything.
Good Luck, this is a very stressful matter.
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