Just got this in a commission junction email and thought it would be of interest.
ATTENTION AFFILIATES:
Commission Junction recently received word that Maryland's version of the "Affiliate Tax" bill was introduced without warning only days ago, and it may be enacted later today or early Tuesday. Unfortunately, Maryland affiliates have had almost no time to react, so your voice needs to be heard within hours, if possible.
Here is a link to information on the bill:
http://mlis.state.md.us/2009rs/billfile/sb1071.htm
Although Commission Junction is not in a position to provide you with legal and tax advice regarding the bill and the action to take, if you oppose this bill, you may wish to contact Speaker Busch at michael.busch@house.state.md.us AS SOON AS POSSIBLE. Click here to access a template with suggested language you may choose to complete and modify accordingly and send to Assembly Member Busch stating your opposition to the proposed bill.
Together we can speak up and hopefully make a difference!
Thanks in advance for your help,
Kerri Pollard
General Manager
Commission Junction
Here's the text of the document:
The Honorable MICHAEL ERIN BUSCH
Speaker of House of Delegates
State House, H-101
Annapolis, MD 21401 - 1991
Subject: OPPOSITION to S.B. 1071, as introduced in the Maryland Senate on March 28, 2009
Dear Assembly Member Busch:
I am a small business owner with a website, and I am in strong opposition to S.B. 1071, which could require retailers that advertise and receive direct or indirect referrals from banner ads and click-throughs on websites, such as mine, to collect sales tax in Maryland.
I am opposed to this bill because it would substantially harm my small business by reducing a large source of revenue that I rely on to survive. This revenue results from providing advertising on my website as part of an “affiliate” or “associate” program with out-of-state retailers. [Describe how your business model is set-up and what you contribute to the local economy.]
If retailers believe that doing business with me will result in their having to collect sales tax on all Maryland sales, they likely will sever ties with my business, putting the viability of my business at risk. Such was the case in New York State where Overstock dismantled its affiliates program and I am told by my colleagues that hundreds of other business followed Overstock’s example. This left thousands of affiliates – most of which are small- and medium-sized businesses with a major loss of income.
For these reasons, I respectfully oppose this legislation.
Sincerely,
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