Both bills were defeated and the fight is finally behind us. I am exhausted but incredibly grateful to everyone who stuck with me through this long ordeal. We need to stay alert for similar proposals in the future but for now we can rest.
May 22, 2016
Final supporters
***FINAL UPDATE*** We successfully defeated both of these bills! THANK YOU for all of the support and action. It made a huge difference!
- Join the Utah PMA Coalition Facebook Page for latest updates on how to fight these bills!
- Share this petition and your opposition to your local representative and senator. Put in your zip code to find your district, then click on the outline of the district for info on your reps: http://le.utah.gov/GIS/findDistrict.jsp
The Utah Senate and House of Representatives have both proposed bills that aim to establish "affiliate tax nexus" laws in the state of Utah. These bills have a long history of producing counteractive results in the states that have enacted them, resulting in job loss, damaged economies and no new tax dollars for the state.
"I am a concerned Utah resident and/or an affiliate marketer in the state of Utah who vehemently opposes Senate Bill 182 and House Bill 235. I ask my elected representatives, as a Utah citizen, to vote NO on these bills."
***MORE INFO ON BILLS & TAX NEXUS***
What Does This Mean? When a sales tax nexus law is put in place, a state begins to treat affiliates as a “physical extension” of the merchants/advertisers the affiliate is promoting. If any of those merchant/advertisers do not have a physical retail presence already in the state, a sales tax nexus law means that an affiliate located in the state will now count as a physical presence- this is what is referred to as ‘nexus’. Because of this nexus, those merchant/advertisers will now have to pay sales tax in the state. House Bill 235 and SB 182 aim at making Utah one of those states that establishes nexus by use of affiliates.
OK, So Why Is This Bad? When a nexus law is passed, merchant/advertisers who aren’t already paying taxes in the affected state are now required to do so if they continue to use affiliates in that state. The alternative is to sever all ties with those affiliates- an option that most advertisers take, and one that hurts you directly as an affiliates. In other words: if Utah passes this bill, your livelihood as an affiliate marketer is greatly jeopardized.
Examples of other states passing these bills with damaging consequences:
- Affiliate blog and
deal site FatWallet.com is probably the most high-profile example of
this. When Illinois passed their nexus bill a few years back, FatWallet
immediately picked up and moved their headquarters to Wisconsin, a state that
has vowed to never pass a nexus law because they know the consequences (and
also know it will attract amazing businesses). FatWallet made this move because
they knew immediately that passing this bill would terminate their
relationships with out of state online retailers and completely devastate
everything they’ve built. FatWallet.com employs over 100 people now. News story
of them leaving is here: https://www.youtube.com/watch?v=h29I-XoIIh8
- BradsDeals.com is another example of the Illinois nexus bill forcing another large affiliate site to leave. They set up shop in the Virgin Islands to avoid any state passing these damaging nexus laws.
- "Before the Amazon Tax was passed, approximately 800 Rhode Island businesses were affiliated with online retailers, which generated $57 million in local income, and $4 million in income taxes...Even more compelling is that the ‘Amazon Tax’ has not generated any sales tax receipts for the state since its inception in 2009."“This tax has probably cost the general fund.” calculated Filippi. “All businesses that had relationships with Amazon and Overstock.com lost that relationship and the income that went with it. The Amazon Tax has been all cost and no benefit.” -2015 Rep. Filipi of Rhode Island. Full summary here: http://www.rilin.state.ri.us/pressrelease/_layouts...
Where Can I Learn More?
House Bill 235 can be found here: http://le.utah.gov/~2016/bills/static/HB0235.html
Senate Bill 182 can be found here: http://le.utah.gov/~2016/bills/static/SB0182.html
Learn more about how affiliate tax nexus laws damage state economies and small affiliate business at the Performance Marketing Association website: http://thepma.org
Updates
Reached 500 supporters
February 26, 2016
February 26, 2016
The feedback from our community has been exhausting to process but it confirms that people are watching these developments with deep concern. I am spending my time tracking the committee agendas and prepping for the next round of debates even when progress feels invisible. This work is draining yet the necessity of keeping the pressure on keeps me awake at night.
Reached 100 supporters
February 25, 2016
307 Comments
Every company that I have worked with in Utah including my own has been involved in affiliate marketing. I have been in the industry for 9 years. After working so hard to build my company, I can guarantee you that my company will be packing bags for CO if this passes.
sB182 will affect so many bloggers income that they rely on to feed their families. If this bill passes many brands will not want to work with us and that will hurt our income and our state will not collect as much income tax. Please make blogger exempt!
Utah has the bad reputation of not being friendly to working women. Many Utah small business owners are bloggers who make a living with affiliates. Please consider their entrepreneurship and what this would do to these women and their families.
This is something that needs taken care of on a federal level so that small businesses like mine do not suffer. Affiliate marketers who make money online will lose their income, and the state will lose our income tax that they would have otherwise received. It benefits no one.
This bill doesn't make sense. The State won't make any money because Amazon will just end their relationship with bloggers so they don't have to charge sales tax and then the State won't get the revenue from the blogger's income. Sounds like a lose-lose proposition.
No more taxes!! Leave the internet alone!
Please don't hurt all of the parents, single- parents, and others who are trying to support their family through their blog or online business. Nexus will hurt too many families who are just trying to survive.
Share this petition
Share this petition to help it reach more people.
Your share link
Both bills were defeated and the fight is finally behind us. I am exhausted but incredibly grateful to everyone who stuck with me through this long ordeal. We need to stay alert for similar proposals in the future but for now we can rest.
May 22, 2016
Final supporters
***FINAL UPDATE*** We successfully defeated both of these bills! THANK YOU for all of the support and action. It made a huge difference!
- Join the Utah PMA Coalition Facebook Page for latest updates on how to fight these bills!
- Share this petition and your opposition to your local representative and senator. Put in your zip code to find your district, then click on the outline of the district for info on your reps: http://le.utah.gov/GIS/findDistrict.jsp
The Utah Senate and House of Representatives have both proposed bills that aim to establish "affiliate tax nexus" laws in the state of Utah. These bills have a long history of producing counteractive results in the states that have enacted them, resulting in job loss, damaged economies and no new tax dollars for the state.
"I am a concerned Utah resident and/or an affiliate marketer in the state of Utah who vehemently opposes Senate Bill 182 and House Bill 235. I ask my elected representatives, as a Utah citizen, to vote NO on these bills."
***MORE INFO ON BILLS & TAX NEXUS***
What Does This Mean? When a sales tax nexus law is put in place, a state begins to treat affiliates as a “physical extension” of the merchants/advertisers the affiliate is promoting. If any of those merchant/advertisers do not have a physical retail presence already in the state, a sales tax nexus law means that an affiliate located in the state will now count as a physical presence- this is what is referred to as ‘nexus’. Because of this nexus, those merchant/advertisers will now have to pay sales tax in the state. House Bill 235 and SB 182 aim at making Utah one of those states that establishes nexus by use of affiliates.
OK, So Why Is This Bad? When a nexus law is passed, merchant/advertisers who aren’t already paying taxes in the affected state are now required to do so if they continue to use affiliates in that state. The alternative is to sever all ties with those affiliates- an option that most advertisers take, and one that hurts you directly as an affiliates. In other words: if Utah passes this bill, your livelihood as an affiliate marketer is greatly jeopardized.
Examples of other states passing these bills with damaging consequences:
- Affiliate blog and
deal site FatWallet.com is probably the most high-profile example of
this. When Illinois passed their nexus bill a few years back, FatWallet
immediately picked up and moved their headquarters to Wisconsin, a state that
has vowed to never pass a nexus law because they know the consequences (and
also know it will attract amazing businesses). FatWallet made this move because
they knew immediately that passing this bill would terminate their
relationships with out of state online retailers and completely devastate
everything they’ve built. FatWallet.com employs over 100 people now. News story
of them leaving is here: https://www.youtube.com/watch?v=h29I-XoIIh8
- BradsDeals.com is another example of the Illinois nexus bill forcing another large affiliate site to leave. They set up shop in the Virgin Islands to avoid any state passing these damaging nexus laws.
- "Before the Amazon Tax was passed, approximately 800 Rhode Island businesses were affiliated with online retailers, which generated $57 million in local income, and $4 million in income taxes...Even more compelling is that the ‘Amazon Tax’ has not generated any sales tax receipts for the state since its inception in 2009."“This tax has probably cost the general fund.” calculated Filippi. “All businesses that had relationships with Amazon and Overstock.com lost that relationship and the income that went with it. The Amazon Tax has been all cost and no benefit.” -2015 Rep. Filipi of Rhode Island. Full summary here: http://www.rilin.state.ri.us/pressrelease/_layouts...
Where Can I Learn More?
House Bill 235 can be found here: http://le.utah.gov/~2016/bills/static/HB0235.html
Senate Bill 182 can be found here: http://le.utah.gov/~2016/bills/static/SB0182.html
Learn more about how affiliate tax nexus laws damage state economies and small affiliate business at the Performance Marketing Association website: http://thepma.org
Updates
Reached 500 supporters
February 26, 2016
February 26, 2016
The feedback from our community has been exhausting to process but it confirms that people are watching these developments with deep concern. I am spending my time tracking the committee agendas and prepping for the next round of debates even when progress feels invisible. This work is draining yet the necessity of keeping the pressure on keeps me awake at night.
Reached 100 supporters
February 25, 2016
307 Comments
I earn and pay my taxes on any money earned from affiliate links on my blog. I have manufactures that I've been designing for for years that count on my honest opinions of their products. My family depends on my income. Why would utah propose a law to disallow this?
Every company that I have worked with in Utah including my own has been involved in affiliate marketing. I have been in the industry for 9 years. After working so hard to build my company, I can guarantee you that my company will be packing bags for CO if this passes.
sB182 will affect so many bloggers income that they rely on to feed their families. If this bill passes many brands will not want to work with us and that will hurt our income and our state will not collect as much income tax. Please make blogger exempt!
Utah has the bad reputation of not being friendly to working women. Many Utah small business owners are bloggers who make a living with affiliates. Please consider their entrepreneurship and what this would do to these women and their families.
This is something that needs taken care of on a federal level so that small businesses like mine do not suffer. Affiliate marketers who make money online will lose their income, and the state will lose our income tax that they would have otherwise received. It benefits no one.
This bill doesn't make sense. The State won't make any money because Amazon will just end their relationship with bloggers so they don't have to charge sales tax and then the State won't get the revenue from the blogger's income. Sounds like a lose-lose proposition.
No more taxes!! Leave the internet alone!
Please don't hurt all of the parents, single- parents, and others who are trying to support their family through their blog or online business. Nexus will hurt too many families who are just trying to survive.
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I earn and pay my taxes on any money earned from affiliate links on my blog. I have manufactures that I've been designing for for years that count on my honest opinions of their products. My family depends on my income. Why would utah propose a law to disallow this?