New tax law forces FatWallet to look out of state
FatWallet gets much of its commissions from sending customers to major online retailers like Amazon or Overstock. The company is now at risk of losing business to another marketer outside of Illinois that doesn't have to pay those same taxes. None of Illinois' border states have affiliate tax laws.
What a mess...
Governor Quinn Abolishes Affiliate Marketing in Illinois
 | ShareASale Blog » Blog Archive » Governor Quinn Abolishes Affiliate Marketing in Illinois Today Governor Quinn in Illinois signed into law HB 3659 which essentially abolishes Affiliate Marketing in Illinois. It is a huge story of job loss in Illinois. Governor Quinn has spoken unequivocally that the growing, innovative, job-creating industry known as Affiliate Marketing is entirely unwelcome in Illinois. This is directly contrary to actions he took just a few weeks ago during his budget address when he announced the creation of the Illinois Innovation Council to address job growth i... |
Dear Sears, Thanks for Nothing: Sears Holdings Applauds Governor Quinn for Signing E-Fairness Bill
HOFFMAN ESTATES, Ill., March 10, 2011 /PRNewswire/ -- Sears Holdings Corporation (Nasdaq: SHLD) one of Illinois' oldest retailers, applauds Governor Pat Quinn's approval of House Bill 3659, which will restore long overdue fairness to the tax system for retailers and taxpayers in Illinois. The "E-fairness Law" helps to correct a longstanding problem of out-of-state businesses not collecting and remitting the sales tax in Illinois, a practice that has put brick-and-mortar retailers at an unfair competitive disadvantage for far too long.
Amazon.com is threatening to leave states and terminate relationships with all its affiliates rather than comply with this new law. As we have stated, we will gladly welcome these affiliates to the Sears Affiliate Team. We recognize and value our relationships with our over 6,500 affiliate partners AND the state and local communities we serve and we look forward to adding new affiliates.
Dear Sears,
Please do issue another press release when you actually have the product selection to make affiliates whole after throwing them under the bus.
FYI, you'll not only need every product that Amazon has, but the product selection of hundreds of other merchants who will terminate affiliates because of your selfish actions just to get Amazon.
Guess what. You didn't get Amazon. But you sure did screw Illinois affiliates, including some of your own who you pretend to value.
Well done. Thanks for nothing.
The Illinois Affiliate Tax is Passing Today
Pat Quinn, the Governor of Illinois is signing the Affliate/Advertising Tax, House Bill HB3659 into law today.
There has probably been stronger opposition from the affiliate industry in this state than any other to date, and it still passed. Big Illinois companies like FatWallet and CouponCabin have publicly stated that they will move out of the state if this is passed, not out of defiance, but to save their businesses. It is a fact that Amazon will terminate affiliate relationships resulting in no collected sales tax.
So why is he signing it?
He's signing it because the proponents of this bill are backed by big box retailers who are throwing a ton of money at it.
They're leaning on state legislators with every bit of FUD they can muster (FUD = fear, uncertainty, and doubt). They are making this all about Amazon, even though to most affiliate marketers, this has little to do with Amazon.
Most importantly, they're playing the "fairness" card. It's not fair to main street retailers that Amazon has a sales tax advantage. "Amazon is not playing fair. Let's get 'em!"
This as become about emotion and principles which is impossible to fight with logic and reason. It doesn't matter that it is a bad bill. It doesn't matter that the end result is zero gained income tax revenue. It doesn't matter that Amazon can simply skirt the law by terminating all affiliate relationships in the state.
The bill passes.
Amazon terminates affiliates.
Other merchants do the same.
Affiliate-powered businesses large and small are decimated.
Tell me. How is that fair?
