Hello fellow affiliate marketers. I am writing you today in the hopes that you will assist your fellow Illinois affiliate marketers fight a new "Internet Tax" being proposed in Illinois. Amazon recently sent all Illinois affiliates the following email: Greetings from the Amazon Associates Program: We regret to inform you that the Illinois state legislature has passed an unconstitutional tax collection scheme that, if signed by Governor Quinn, would leave Amazon.com little choice but to end its relationships with Illinois-based Associates. You are receiving this email because our records indicate that you are a resident of Illinois… Please note that this not an immediate termination notice and you are still a valued participant in the Amazon Associates Program. But if the governor signs this bill, we will need to terminate the participation of all Illinois residents in the Associates Program. After that point, we will no longer pay any advertising fees for sales referred to amazon.com, endless.com, and smallparts.com nor will we accept new applications for the Associates Program from Illinois residents. The unfortunate consequences of this legislation on Illinois residents like you were explained to the legislature, including Senate and House leadership, as well as to the governor’s staff. Over a dozen other states have considered essentially identical legislation but have rejected these proposals largely because of the adverse impact on their states’ residents. Governor Quinn’s office may be reached here: http://www2.illinois.gov/gov/Pages/ContacttheGovernor.aspx We thank you for being part of the Amazon Associates Program, and wish you continued success in the future. Sincerely, Amazon.com The bill is called: Affiliate Nexus Tax, Amendment 3 of HB 3659 What the bill will do is require companies, such as Amazon.com, who have affiliates in Illinois to collect sales tax from anyone who clicks on affiliate links located in Illinois that result in a purchase. Please follow this link: http://www2.illinois.gov/gov/Pages/ContacttheGovernor.aspx Then either make a polite phone call or send an email to our Governor and ask him to "Veto the Affiliate Nexus Tax, Amendment 3 of HB 3659" as it will hurt small business owners in Illinois because companies will simply cut their ties with Illinois affiliates. You can simply copy and paste the following email letter that is being circulated to show your opposition: Dear Governor Quinn, I am writing to you to express my vehement opposition to Amendment 3 of HB 3659 (page nine, 1.1, declaring that online affiliates will establish nexus for out-of-state retailers). This Amendment will end up costing Illinois jobs and revenue, and not gain any additional sales tax because it will devastate thousands of Affiliate Marketers. Affiliate Marketers are simply website owners who earn income from ads placed on their sites. They are the unintended victims if this legislation passes. During these times of drastically high, long-term unemployment, thousands of hard working Illinois residents have turned to the internet as an income source. This Amendment will take away, what has become a financial lifeline for thousands of families. Out-of-state merchants will terminate their affiliate relationships if HB 3659 is passed. And, most alarming, this law will directly contribute to Illinois’ budget crisis. When similar laws passed in New York, North Carolina and Rhode Island, over 200 merchants terminated affiliate programs in just such a manner. I implore you not to let the same thing happen to Illinois Affiliate Marketers. I respectfully ask you to veto the Affiliate Nexus Tax, Amendment 3 of HB 3659. Sincerely, Concerned Small Business Owner FYI - This bill has already passed the Illinois House and Senate. The only way to stop it now is if Governor Quinn vetoes the bill! For those of you thinking: "Well I don't live in Illinois, why should I care?" You should care because these crazy internet tax laws are starting to spread across America so your state may be next! Thanks for your help everyone, Chad
Update 1/23/2011: Bill has been sent to Governor Quinn. Still no word on whether he will sign the bill or veto it. Please stay active and request that Governor Quinn veto the bill! Thanks for your help!
Update 2/09/2011: Still no word on whether Governor Quinn will sign or veto the bill. He has 60 days from 1/10/2011 to sign or veto the bill. In Illinois: Any bill not returned by the Governor within 60 calendar days after it is presented to him shall become law. If recess or adjournment of the General Assembly prevents the return of a bill, the bill and the Governor's objections must be filed with the Secretary of State within such 60 calendar days. The Secretary of State must return the bill and objections to the originating chamber promptly upon the next meeting of the same General Assembly at which the bill can be considered. Thanks for your help!
Update 3/02/2011: Still no word on whether Governor Quinn will sign or veto the bill. Time is running out, and I am beginning to think it is all over for affiliate marketers in Illinois. In recent statements Governor Quinn seems to be leaning more towards brick-and-mortar businesses than affiliate marketers. In Illinois: Any bill not returned by the Governor within 60 calendar days after it is presented to him shall become law. If recess or adjournment of the General Assembly prevents the return of a bill, the bill and the Governor's objections must be filed with the Secretary of State within such 60 calendar days. The Secretary of State must return the bill and objections to the originating chamber promptly upon the next meeting of the same General Assembly at which the bill can be considered. Thanks for your help!
Unfortunately, Governor Quinn has signed the bill and Illinois affiliate internet marketers are now screwed. Similar bills are being proposed in many other states, so I encourage the rest of you to look at your own states because you may be next on the list. Commission Junction has an up-to-date page showing which states are trying to pass similar laws here: Internet Taxes Being Proposed By State Best of luck to you all!
It basically means that people with websites in Illinois will no longer be able to participate in Amazon's affiliate program. In addition to that, many other companies will simply follow Amazon's lead and also cut their ties with affiliates in Illinois.