California Affiliate Tax Repealed?Written by Pace Lattin
September 24, 2011 # 6:18 am # Industry News # 6 Comments
As you may know, just a few months ago, CA Governor Brown signed into a law an affiliate tax that had taxed purchases by any company with California affiliates. The immediate result had been the removal of tons of affiliates from companies like Amazon.com. However, according to the Performance Marketing Association, Governor Brown has signed legislation that will repeal this law for the period of one year.
The Performance Marketing Association’s Executive Director, Rebecca Madigan stated, “The signing of this legislation means these 25,000 web-based entrepreneurs will be able to get back in business. For the PMA, this issue has always been about keeping the vibrant Affiliate Marketing sector of the economy strong and growing.”
However, as Kevin Wallach has pointed out in his article about this subject, Amazon Takes Deal Screws Affils this isn’t really much of a deal, since this is only a yearly deal and really doesn’t provide any incentives for companies to continue working in California. In fact, if you read Kevin’s article he makes a very good point that this is just a law to help protect Amazon and as part of their original deal, they dropped their bid to repeal the law completely. What does this mean? In a year the affiliate tax will be back in place, and we’ll be no closer to helping California Affiliates.