Overview of the advertising tax, how it affects affiliates, origins in New York, the Quill Corp. v. North Dakota Supreme Court decision, how affiliates can take action, states where there is currently activity, and resources for the latest on the advertising tax.

1. Advertising Tax Talk
Baltimore, MD – July 9, 2009
Shawn Collins, Co-Founder, Affiliate Summit
Missy Ward, Co-Founder, Affiliate Summit

2. Don’t Ignore It – You’re Affected
 Laws force retailers with affiliates in states to collect sales tax
 Retailers terminating affiliates to avoid tax
 You could be blacklisted from key affiliate programs

3. Advertising Tax History in NY
 Nov 07 – Gov. Spitzer proposed tax;
huge backlash
 Feb 08 – Gov. Spitzer brought it up
again
 Mar 08 – Gov Patterson champions the
tax
 May 08 – Amazon and Overstock filed
law suit in State Supreme Court in
Manhattan
 Jun 08 – NY advertising tax kicks in
 Jan 09 – NY court upholds law in
response to Amazon and Overstock
lawsuit

4. Quill Corp. v. North Dakota
 Quill Corp. v. North Dakota, 504 U.S.
298 (1992) is a Supreme Court of the
United States case concerning use tax.
Quill Corporation is an office supply
retailer. Quill had no physical presence
in North Dakota (neither a sales force,
nor a retail outlet), however it did have a
licensed computer software program that
some of its North Dakota customers
used to check Quill's current inventories
and place orders directly. North Dakota
attempted to impose a use tax on Quill,
which was struck down by the Supreme
Court.
Wikipedia

5. Take Action
 Organize with other affiliates in your state
 Identify your state representatives (state government, not
federal)
 Customize form letters to your state representatives
 Try to meet your state representatives
 Talking points
 Who you are, where you live, your ties to the community.
 Explain your business – that you are a marketer and earn money through
Internet advertising.
 Provide an estimate (if possible) of the revenue impact on your business of
out-of-state merchants chose to end their affiliate programs.
 Discuss impact of New York’s advertising tax on affiliates.
 Request support from your state representatives to oppose the bill.
 Contact the media with your story

6. Current Activity
 CA Another bill pending (ABX3 19 and SBX3 17)
 CT Back to committee for further study; ongoing budget talks
 HI Vetoed by Governor, legislators may override
 MD Did not pass committee; will be active again next session
 MN Part of Senate/House budget which was broad vetoed
 NC North Carolina Internet Tax legislation part of pending budget
 NY New York Internet tax in effect since June 2008
 RI Rhode Island Internet tax in effect
 TN HB1947 and SB1741 in committee
Source: Affiliate Voice, 7/3/09

7. Advertising Tax Resources
 Affiliate Voice - http://affiliatevoice.com/
 Performance Marketing Alliance -
http://www.performancemarketingalliance.com/
 Fight Against the #AdvertisingTax -
http://www.facebook.com/group.php?gid=77931506576
 Tax Law Discussions on ABW -
http://forum.abestweb.com/forumdisplay.php?f=543
 Video summary - http://www.affiliatetax.com/

8. Contact Shawn Collins
 shawn@affiliatesummit.com
 Twitter: @affiliatetip
 AIM: affiliatetip
 Blog: http://blog.affiliatetip.com
 Facebook: http://www.facebook.com/affiliatetip
 LinkedIn: http://www.shawnonlinkedin.com

9. Contact Missy Ward
 missyward@affiliatesummit.com
 Twitter: @missyward
 AIM: MsMissyWard
 Facebook:
http://www.facebook.com/MissyWard
 LinkedIn:
http://www.linkedin.com/in/missyward
 Personal Blog:
http://www.MissyWard.com

10. Affiliate Summit East 2009
 Who: Thousands of affiliate marketers
 What: The premier affiliate marketing
conference
 When: August 9-11
 Where: Hilton New York
 Why: Learn and network
Details at www.AffiliateSummit.com