Stop the Colorado Advertising Tax NOW!

by Josh Todd on January 23, 2010

Breaking News!

The Performance Marketing Association (PMA) is reporting that a Colorado advertising tax bill (HB-1193) is going to be presented to Committee next week.  Now is the time for anyone living in Colorado and working in the Affiliate Marketing and Online Advertising industries to get ready to make your voice heard!

If you haven’t heard about it before, the advertising tax (also called the “Amazon Tax”) is an attempt to bring some income back into the budgets of the states by forcing online merchants and companies to charge sales tax for online purchases and sales.  The additional paperwork and accounting trouble that this brings is enough to make major companies like Amazon opt to kick out all the affiliates that live in a state with the advertising tax.

Whether you are an affiliate, a network, a merchant, or an agency, this tax could have a huge impact on your business, and it’s not going to be a positive one. Even if you aren’t personally involved in the industry, you might have family and friends that are, and you can still make your voice heard.

The main need right now is for people to send an email to decision makers.  It only takes a second to send an email, and it could have a potentially massive effect on whether this bill passes or not.  The PMA has been effective in squashing similar bills in other states, and now it’s our turn in Colorado.

To get involved, all you need to do is register your support with the PMA so that they can keep you updated when the time comes to take action.  Simply go to http://performancemarketingassociation.com/advocateform.html and fill in the form.  It’s free, you don’t have to join the PMA or anything like that, it’s just a mailing list so that they can tell us who to email and even give us templates to make it super easy.

Together we can stop the advertising tax!

We now return you to your regularly scheduled program.

{ 2 comments… read them below or add one }

Kev January 24, 2010 at 4:03 am

Thanks for bringing attention to this important issue.

But do you know why Amazon kicked out New York affiliates but most other advertisers did not. There still are tons of affiliates running a business out of New York. Do most advertisers just not care about it?

For CPA network advertisers wouldn't they have to collect a tax if the network they had an offer on had an affiliate getting sales for them who was based in New York?

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Josh Todd January 25, 2010 at 6:54 am

@Kev As far as I understand it, yes the Advertiser would have to collect sales tax. I think Amazon kicked out their affiliates because of the sheer volume of paperwork and hassle it would take to collect the Sales Tax. Perhaps NY affiliates are just running with smaller retailers now? I haven't done a good job of keeping up with the aftermath of the NY affiliate tax, so I'm not sure how much it affected affiliates and networks.

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