Many in the affiliate industry have been talking about CA Assembly Bill 178. If you’re unfamiliar with AB 178, it is a pending bill that is similar to one passed in New York that considers certain affiliate marketing publishers as sales representatives for out-of-state retailers. This would result in the out-of-state retailer being required to collect sales tax on sales to in-state customers. It is possible that this could cause out-of-state retailers to disallow affiliate marketing for publishers based in California. This bill will be heard in committee on April 13th in Sacramento, and all California-based affiliates can influence the outcome of the vote.
While it is unlikely that this bill would have any direct impact on eBay Partner Network, as members of the broader affiliate industry we wanted to make sure that we are doing our part to ensure that affiliate marketing remains an opportunity for people to build businesses and livelihoods. This bill is also being watched closely by other states who are looking at ways to drive more tax revenue so it could have a cascading effect on the affiliate industry if it were passed.
Lawmakers need to hear directly from California-based affiliates. If you live in California, please consider writing to your representative to oppose this legislation.
The Performance Marketing Alliance has done a nice job of creating a campaign against AB 178 along with a pre-formatted letter to send to your assembly member. Please visit their site for more information. To see the bill and its status, you can visit the California legislative website.
Thanks
The eBay Partner Network Team
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