Advertising Tax TalkBaltimore, MD – July 9, 2009

Shawn Collins, Co-Founder, Affiliate Summit

Missy Ward, Co-Founder, Affiliate Summit

Don’t Ignore It – You’re Affected

Laws force retailers with affiliates in states to collect sales tax Retailers terminating affiliates to avoid tax You could be blacklisted from key affiliate programs

Advertising Tax History in NY

Nov 07 – Gov. Spitzer proposed tax; huge backlash

Feb 08 – Gov. Spitzer brought it up again

Mar 08 – Gov Patterson champions the tax

May 08 – Amazon and Overstock filed law suit in State Supreme Court in Manhattan

Jun 08 – NY advertising tax kicks in Jan 09 – NY court upholds law in

response to Amazon and Overstock lawsuit

Quill Corp. v. North Dakota

Quill Corp. v. North Dakota, 504 U.S. 298 (1992) is a Supreme Court of the United States case concerning use tax. Quill Corporation is an office supply retailer. Quill had no physical presence in North Dakota (neither a sales force, nor a retail outlet), however it did have a licensed computer software program that some of its North Dakota customers used to check Quill's current inventories and place orders directly. North Dakota attempted to impose a use tax on Quill, which was struck down by the Supreme Court.

Wikipedia

Take Action

Organize with other affiliates in your state Identify your state representatives (state government, not

federal) Customize form letters to your state representatives Try to meet your state representatives Talking points

Who you are, where you live, your ties to the community. Explain your business – that you are a marketer and earn money through

Internet advertising. Provide an estimate (if possible) of the revenue impact on your business of

out-of-state merchants chose to end their affiliate programs. Discuss impact of New York’s advertising tax on affiliates. Request support from your state representatives to oppose the bill.

Contact the media with your story

Current Activity

CA Another bill pending (ABX3 19 and SBX3 17) CT Back to committee for further study; ongoing budget talks HI Vetoed by Governor, legislators may override MD Did not pass committee; will be active again next session MN Part of Senate/House budget which was broad vetoed NC North Carolina Internet Tax legislation part of pending

budget NY New York Internet tax in effect since June 2008 RI Rhode Island Internet tax in effect TN HB1947 and SB1741 in committee

Source: Affiliate Voice, 7/3/09

Advertising Tax Resources

Affiliate Voice - http://affiliatevoice.com/ Performance Marketing Alliance -

http://www.performancemarketingalliance.com/ Fight Against the #AdvertisingTax -

http://www.facebook.com/group.php?gid=77931506576 Tax Law Discussions on ABW -

http://forum.abestweb.com/forumdisplay.php?f=543 Video summary - http://www.affiliatetax.com/

Contact Shawn Collins

shawn@affiliatesummit.com Twitter: @affiliatetip AIM: affiliatetip Blog: http://blog.affiliatetip.com Facebook: http://www.facebook.com/affiliatetip LinkedIn: http://www.shawnonlinkedin.com

Contact Missy Wardmissyward@affiliatesummit.comTwitter: @missywardAIM: MsMissyWardFacebook:

http://www.facebook.com/MissyWardLinkedIn:

http://www.linkedin.com/in/missywardPersonal Blog:

http://www.MissyWard.com

Affiliate Summit East 2009

Who: Thousands of affiliate marketersWhat: The premier affiliate marketing

conferenceWhen: August 9-11Where: Hilton New YorkWhy: Learn and network

Details at www.AffiliateSummit.com