Attack of the Killer Affiliates


government.jpgADOTAS — So a group of affiliates that oppose a bill pending in California met with lawmakers yesterday.

AB 178 would  would force companies with no physical presence in the state to collect and remit taxes. Karen Garcia, from GTO Management, wrote that while she was impressed with the technical savvy of some of the staffers, she was “deeply concerned by the complete lack of understanding of even the most basic processes of the industry” by some, including those connected to Assemblyman Charles Calderon, chairman of the Assembly Revenue and Tax Committee and is co-sponsoring this bill.

(I covered Calderon when I was in California, no surprise at his cluelessness. He made lame attempts to win the Speakership position. Here’s a funny one about his attempts against legendary Willie Brown.)

Garcia also has a list of the people the group met, and she mentions how the bill, which still has to get out of committee, might fare.  It has a hearing April 13.

“It’s still up in the air for many of the Assemblymembers, however in the meetings my group attended, Assemblyman Nielsen and Assemblyman DeVore were both opposed to the bill. Senators Runner and Ashburn were also opposed, but the bill is still in the Assembly, so their votes don’t count as of yet. Assemblywoman Ma and Assemblyman Coto’s staff didn’t come straight out and say that they would vote to support the bill, but both mentioned that since it is sponsored by Calderon’s office and he is the chair of their committee and is also a fellow Democrat, they would be hard pressed to oppose it.” [italics mine]

The problem here seems to be that everyone coming out opposing it are Republicans, not Democrats. Democrats rule in California.

*BTW, Amazon just called me back. It is appealing the New York decision that forces them to collect taxes and remit it to the state. is also appealing the decision.

— Express your opinion, comment below.


  1. I am a Democrat, and I’m against the passage of this bill. I urge all other Democrats with small online websites dependent on affiliate advertising to call their Assembly representatives today, especially if they also happen to be a Democrat. This is not a partisan issue. It affects all of us.

  2. this Bill and the internet advertising affiliate tax needs to be stopped in its tracks. it is ill conceived and does not create new taxes if all the merchant programs are shut down. Which is what happened in NY State.100 programs and 3400 affiliates were dropped.

    The Bill hurts the only growing industry and punishes affiliates, small business, merchants and networks.

    The Performance Marketing Alliance PMA has a very large grass roots effort going fighting the tax in CA and other States. Its very important that everyone get involved. this tax is spreading and has a large negative impact on the industry.

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