A few days ago I posted a warning that the state of Illinois is about to pass a law that adds sales tax to online commerce if an affiliate in the transaction lives in Illinois.
The resolution has passed both the House and the Senate in the Illinois legislature.
An insider has told me that emailing the governor will do no good. If you did so, nobody’s listening.
Here’s what I want you to do instead: Please write the governor as a public comment on this blog page below. My contact will hand deliver a hard copy of all the responses to a state employee who works for Governor Quinn. You’re welcome to include your business street address. Please write to Governor Quinn in the comment section below.
Explanation of the Bill:
If a person in Kansas buys a teddy bear made in Vermont, and an affiliate in Illinois is involved in the transaction, the state of Illinois will force the Vermont company to pay Illinois sales tax. That means the teddy bear company in Vermont now has to muck around with the byzantine layers of state and local sales tax. Potentially different rate for every city and county.
Of course no company in Vermont would ever be willing to slog through all that red tape, so they’re just going to terminate all their affiliates in Illinois. Which is exactly what Amazon has promised to do. That will kill Illinois’ tax revenue instead of increasing it.
My assistant called Springfield and confirmed the following information about HB3659:
– The Senate voted “Yes” on 1/5/2011
– The House voted “Yes” on 1/6/2011
– The bill is now on it’s way to the Governor and once it reaches his desk he has 60 days to decide whether or not to pass it
The actual verbiage of the bill, Amendment 3 of HB 3659, is here. Please write to Governor Quinn in the comment section below. My contact will hand deliver this to the appropriate influencers.
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About the Author
Perry Marshall has launched two revolutions in sales and marketing. In Pay-Per-Click advertising, he pioneered best practices and wrote the world's best selling book on Google advertising. And he's driven the 80/20 Principle deeper than any other author, creating a new movement in business.
He is referenced across the Internet and by Harvard Business Review, The New York Times, INC and Forbes Magazine.
68 Comments on “Illinois will crush affiliate marketing if you don't act now.”
Gov. Quinn,
You should veto this bill if for the only reason that it is totally unreadable unless you are a lawyer. It also has so many other things in it other than affiliate marketing it’s unbelievable.
Watercraft? Florists?
You should veto any bill that is written in such a meandering way that no one can read it let alone understand it.
Governor Quinn,
I am also very upset that this law may be passed. It will not help the financial state of Illinois. I am a nurse who works as a nurse but also as an affiliate marketer to make extra money to help pay my bills and now will have even higher bills to pay thanks to the new Illinois tax law. Now, my main affiliate money is being taken away from me as Amazon has told me that if this is passed, then I can no longer be an affiliate. I am seriously considering a move out of state. If people are moving out of your state, then you obviously won’t get our income taxes. Now if you pass this law, you also will not get the taxes from Amazon either, nor the income taxes for the people who are making money with Amazon. How does that help the state at all?
As an Illinois resident with an affiliate marketing business that would move out of Illinois if Illinois Bill HB 3659 passes.
A plea to
The Honorable Patrick Quinn, Governor
On an affiliate forum site it states that Illinois has 9000 affiliate marketers.
Why would you want to lose 9000 badly needed incomes? If Boeing or Caterpillar had 9000 jobs in Illinois being affected by this tax you can bet there isn’t a legislator that would have dreamed of presenting it.
It’s not that Amazon and other big affiliates companies that have associates in Illinois can’t track and possibly gather tax money. It’s not whether they should or not.
It’s they don’t want to and won’t. These companies will just terminate 9000 associates as they have in the three states that have passed this type of tax law. With the states having lost revenue as a result.
Their businesses will have a small blip in revenue loss but easy to survive and go on. The 9000 associates – they may or may not survive. If they do they will have less income to report for the new income tax increase.
If the larger ones that have employees move out of the state as they have stated they must do to survive. The state will lose their income tax + the sales tax of these families spending their money to live in Illinois + any lost employees will be on unemployment + lost office rentals + lost property taxes. It doesn’t seem logical to create a tax that will not generate income and will hurt 9000 families plus the state.
The Downside –
This tax will not generate income because the companies will not collect it. It will ultimately cost Illinois badly needed tax income.
It will stop anyone from starting this kind of business in Illinois in the future. Hurting future tax generation.
According to the Tax Foundation Illinois tax payers pay about $4346.00 per capita in yearly sales taxes. Let’s look sales taxes if you had the worst case that all 9000 were total Illinois job & income losses and there was an average of three people in every family.
4346 X 3 people = $13,038 in taxes
13,038 x 9000 families = $117,342,000 in lost sales taxes
Even if half became true losses.
It would mean a loss of $58,671,000.00 in sales taxes with no increase. If only a third it would be $39,114,000.00. Add in lost income and property taxes and it’s a loss Illinois can’t afford.
The Only Upside –
The Illinois Government looks good to the uneducated public because it looks like it’s doing a good thing. When really they are hurting the state with an eventual large loss of tax income.
If only Illinois would help these small businesses thrive and increase their income instead of hurt them. They would be glad to pay their fair share of added income tax at the higher rates now being talked about. Plus they would have more income to spend generating more sales taxes.
It’s tough to ask these 9000 voters to pay an increased income tax when you take away the ability to pay it.
It has been stated that small businesses are the back bone of commerce. Please make it more hospitable to do business in Illinois for these people so more of them will continue in Illinois and more would want to start a business here.
Governor – Please VETO Senate Amendment 3 of HB 3659 (see Line 22 through 25, Sec. 1.1 on page 9.
As an Illinois resident with a successful affiliate marketing and consulting business, I can and will take my business to another state if HB 3659 passes. I hate to do it because my entire family is in Illinois and I’ve spent my entire life there, but the passage of this law will basically force me from my own state. I simply can’t stay in Illinois if retailers like Amazon kick me out of their programs – something they have promised to do if HB 3659 passes.
Governor Quinn,
I am a Shorewood, IL resident and am writing in opposition to HB 3659 as amended on January 4, 2011 and known as the affiliate tax nexus bill. I operate a small business in Illinois with a large focus on Internet advertising and, if this provision becomes law, it will potentially cut my business income in half, causing hardship for my family. In the meantime, it will not actually raise revenue for Illinois and may actually cost the state revenue. The bill was passed in less than 48 hours, which did not allow Senate and House members an appropriate amount of time to learn about the true nature of the bill or to make an informed decision.
The subject of this bill is commonly referred to in the industry as an “advertising tax,” “affiliate tax,” or the “Amazon.com tax.” Generally, the hope with this type of legislation is to gain tax revenue from out-of-state retailers by establishing a nexus through in-state website owners who advertise products sold by those retailers. This makes it appealing on its face and it is promoted by brick and mortar retailers who dislike the online competition and disparity in tax collection. The reality, however, is that attempts at creating such a nexus results in the out-of-state retailers terminating their contracts with the website owners, resulting in no additional revenue collection by the state and loss of income, or even complete unemployment by the website owners who will either shut down their businesses or leave the state in order to keep operating. That, in turn, leads to a decrease in income tax revenue to the state from the website owners, coupled with an increase in costs to the state in terms of paying public benefits, such as unemployment benefits. The state will also face a legal constitutional challenge if the bill passes, resulting in more state expenditures. For example, when the state of New York passed similar legislation, approximately 200 companies dropped their New York affiliates and several of the larger companies brought suit against the state. That litigation is ongoing, with a recent decision determining that it was not unconstitutional on its face, but could be unconstitutional as applied. In any event, the upshot is that such a bill is good for no one.
My own business consists of small health and beauty websites such as Beauty and Fashion Tech (http://beautyandfashiontech.com) and Girl Gloss (http://girlgloss.com). On these sites, a portion of my income is derived from advertising products sold by out-of-state retailers and I am paid for purchase referrals through advertising on my sites. I do not directly sell the products. I do not handle customer money, do not deliver products to the consumers, or even know who the consumers are. I simply advertise and am paid based on performance of those ads. I pay state income tax based on income earned on my sites. The income from these sites helps support my family, and loss of income from my websites would create a hardship. If HB 3659 becomes law I will have to relocate my business elsewhere.
I have already received notice that two of my partners will terminate me if the bill passes. Also, when such legislation was proposed last year, I was terminated by a program simply because the legislation was pending. Thus, the mere existence of bills such as HB 3659 has already had an effect on my business. If the bill passes, a substantial portion of my income and the income of other small business owners such as myself will be lost.
Please veto HB 3659. Passage of the bill will not actually provide any benefit to the state. In the process, many businesses will be destroyed, leading to additional burdens placed on an already bleak state budget.
I realize that these are hard times and that everyone is seeking ways to increase revenue. I also realize that brick and mortar businesses are frustrated by online competition and that the state would like a way to collect additional sales tax. But this legislation is not the way. Please do not harm my livelihood and that of others with a potentially unconstitutional affiliate tax nexus provision that won’t actually provide any sort of benefit yet stands to cause a great deal of harm.
Sincerely,
Carleen Pruess Coulter
913 Madiera Drive
Shorewood, IL 60404
For a couple years I struggled to find work in Illinois during the economic recession while putting up with the corruption of Illinois politics. Just recently I found a part-time job. Affiliate marketing or internet marketing gives ordinary people like me the opportunity to earn some extra income from home. It gives hope to those of us who are looking for different ways to earn money to support our families. Are you really looking out for the best interest of ordinary people like me and our families or just interested in the states bottom line Governor Quinn? By signing this bill your actions will show the lack of concern your administration has for the people and small businesses of Illinois. I know that if this bill is signed I will focus my online marketing efforts to voting you and your administration out of office. I guess we could still use the internet for some good. It’s unfortunate that you think this will help our current state and economy.
Dear Gov. Quinn –
I am an Illinois resident and Amazon affiliate. A few days ago I as well as all Illinois Amazon Affiliates received an email stating that Amazon will terminate our accounts if HB 3659 is signed into law.
Please veto HB 3659.
As a business owner who thought that they were doing a good service in buying, rehabbing, and selling properties in Illinois I needed to find another avenue to make a living when the real estate market (the selling part) dried up.
As a business owner who could not collect unemployment compensation, I focused 100% of my energy into selling products on Amazon as an Amazon associate. Today as I read the newspapers I just feel very very discouraged. Without the income, bills won’t be able to be paid.
I have to do what is right for my family and today that means looking at an alternative to where I could still be an Amazon Associate. That alternative seems to be leaving the state of Illinois and I’ve taken the first step today to make that happen should the bill be signed.
Please veto HB 3659.
Sincerely,
Paul Tomlinson
Governor Quinn,
It just doesn’t make sense to hurt the little guys while others prosper.
My husband and I wrote books this year that are for sale online and we are working on trying to establish a local/mobile business to service small businesses in our area. But we have been told that we will no longer be allowed to be sellers on amazon.
We are both working 9-5 jobs in industries that have been completely outsourced – 90% of my company is gone. Most jobs to India/China. We wanted to try a small business to help replace the retirement that has all but disappeared.
Those receiving pensions in Illinois have not been hit by the recession that hit us all. Why is this issue being ignored? There are so many in this state that are getting pensions that don’t deserve them because of politics. Fixing this problem would fix our state…you need to have the courage to do this. Help those who deserve to succeed in Illinois and don’t drive away small business.
Thanks for listening.
Dear Governor Quinn:
If this bill is passed, I fear I may have to move back to Wisconsin where I grew up. I live in Rockford, only 30 minutes from Beloit – my home town.
I wonder how many others will leave the state – and thus you will lose collecting income taxes?
Dear Gov. Quinn —
I am an Illinois resident and Amazon affiliate. Please veto HB 3659.
Amazon has sent notices to all of its Illinois affiliates that it will terminate us if this bill is signed into law.
Instead of raising revenue for the state, signing this bill will lower revenue. All of the Illinois affiliate currently pay income tax on our affiliate revenue.
The Performance Marketing Association estimates that there are 9,000 affiliates in Illinois — that’s NINE THOUSAND small businesses that will be put out of business. In 2009, these 9,000 businesses paid $18 million in Illinois income tax (on a staggering $611 million of income that then gets spent in other Illinois businesses).
I understand that the State of Illinois is in a serious budget crunch. But signing this bill will harm the state’s finances, not help them.
Please veto HB 3659.
Thank you,
Carolyn Shearlock
TheBoatGalley.com
Neoga, IL 62447
Helpful information:
According to this article: http://www.bakermckenzie.com/RROperatingInternetSalesTaxNov09/
…it may also result in driving Internet marketing revenues from domestic providers to foreign providers that would not create nexus issues for out-of-state retailers.
States that adopt such laws should consider their impact not only on the Internet retailers, but also on their own citizens who derive their livelihoods from providing marketing services to such retailers.
Overstock.com dropped its California affiliates, but reinstated them when Governor Schwarzenegger vetoed the Amazon law passed by the state legislature.
Dear Governor Quinn,
The federal income tax was first enacted in
1862 to support the Union’s Civil War effort
albeit the system was somewhat different
than todays.
It was eliminated in 1872, revived in 1894.
In 1913, the 16th Amendment to the
Constitution made the income tax a permanent
fixture in the U.S. tax system. The IRS Code
and features of the Tax have changes many
times between then and now.
Realize, it was not that long ago that there
were no taxes at all in this country. It’s
basically the governments greed that’s gotten
us into the fine mess we’re currently in.
Now you want to cash in on and destroy our
Internet business too. The government has
already proven they know nothing about how
to run a business or manage money… How
many trillions of dollars in debt did you
get us. Enough Already!
Please do not sign Amendment 3 of HB 3659.
-George Balek :o)
Governor Quinn,
Please veto Amendment 3 of HB 3659.
This bill will eliminate the paychecks of many Illinois-based entrepreneurs. And, 5% of nothing is nothing. The Illinois-based entrepreneurs and small businesses will need to find more business-friendly states to move to, killing more jobs. It seems like lose-lose-lose for Illinois.
Nan Hughes
Governor Quinn,
Please, Please, Please do not sign Amendment 3 of HB 3659 into law.
One of your stated highest priorities is to protect and grow Illinois jobs.
Approving the amendment would do just the opposite.
I believe thousands of jobs would be lost. Thousands of small businesses in Illinois would go out of business or leave the state to a more business friendly state.
The net result will be a decrease in taxes collected, not an increase. I believe you already know that based on what several other states have experienced when they implemented a similar law.
I understand that the state has budget problems. But,Amendment 3 of HB 3659 is definitely not the way to solve those problems.
Amendment 3 of HB 3659 will simply result in companies like Amazon.com terminating their relationship with IL based affiliates. I am one of their affiliates and received such a notice from Amazon. So if the amendment is enacted, not only will the state not be able to collect the additional tax, but the state will lose far more from loss of the personal and/or corporate taxes of the companies that go out of business while we support more people on unemployment.
Please save jobs, help small businesses grow, and Veto Amendment 3 of HB 3659.
Paul Kaliher
My PERFECT Home Based Business
Naperville, IL
Dear Gov. Quinn,
I join the other Illinois small business owners attempting to get your attention regarding the damage that will be caused by Amendment 3 of HB 3659. Amendment 3 of HB 3659 will kill MANY small businesses in Illinois and will drive companies that offer Affliate Marketing deals out of the state. This will result in less business and thus less income for the state.
I understand you are attempting to offset the tremendous debt Illinois is in, but the passing of Amendment 3 of HB 3659 will force businesses to leave the state. This will actually have the OPPOSITE affect you were hoping for. If this tax is put into play it will kill affiliate marketing in Illinois. I beg you to reconsider signing this tax.
Dear Governor Quinn,
My entire business is based on doing business wit affiliates from other states. None of my affiliates want to do business with me anymore if Amendment 3 of HB 3659 passes. Even Amazon will not do business with me anymore.
I pay taxes in Illinois on all of my income but that will fall to $zero if I do not have affiliates! If I want to continue my business, I will have to move to another state, even though I was born here and my family lives here.
Please don’t make me move to support myself! Do not let Amendment 3 of HB 3659 pass. Other states have tried the same thing and it has failed miserably.
If this passes, I am sure you will put several people out of business! Think before you do this, please!
Sasha Spinner
Mr. Quinn:
Amendment 3 of HB 3659 is going to hurt Illinois rather than help in any way. Affiliate marketers are honest hard working ,tax paying residents of Illinois. The legislation could in fact put these small businesses out of business entirely.
Sir if that happened than their would be less people paying income tax and more folks on unemployment. That’s really sad Governor! Please consider that you are effecting thousands of Illinois residents by in some cases eliminating their jobs. Please reconsider your decision.
To: Governor Quinn,
Signing Amendment 3 of HB 3659 will be an economic disaster for the small business internet entrepreneur.
Today, many people are looking for ways to supplement their incomes as well as starting up internet businesses through affiliate marketing. This bill not only destroys the dreams of the small internet business entrepreneur but also will eliminate the future income tax revenue that Illinois affiliates could be paying if they were able to stay in business.
By signing the bill You will undoubtedly end small business internet entrepreneurship and cause many internet companies to avoid doing business in Illinois.
So, please consider your decision in favor of internet small businesses by not signing Amendment 3 of HB 3659. Do want Illinois to be seen as an unfriendly State for E-commerce or do want to see Illinois entrepreneurs thrive by keeping their dreams alive.
Governor Quinn,
I am distressed to learn about Amendment 3 of HB 3659, which will kill affiliate marketing in Illinois. I am a voting, tax paying resident of Illinois. I am also an independent online marketing professional and many of my clients rely online affiliate marketing. If this tax goes into effect, businesses will leave Illinois, close, or simply lose revenue streams when companies outside of Illinois cut ties with us to avoid this tax. Amazon.com has already promised to do just that rather than pay this tax.
You will be killing income tax revenue and job creation with this bill.
If this tax is put into play it will kill affiliate marketing in Illinois. I beg you to reconsider signing this tax.
Thank you,
Stephanie Berger
Please veto HB 3659. While the intentions are honorable, the bill will defeat their purposes. It instead reduce commerce, revenue and state tax income (not increase it).
Illinois needs the revenue and jobs and should support entrepreneurship. Not discourage it.
Dear Govenor,
Please veto HB 3659
Governor Quinn, I’ve long known you as an advocate for small business. You are well aware if you sign HB 3659 as constituted, Amazon will terminate its relationships with Illinois affiliates. If that happens, my small home based business loses a significant income.
There is no reason whatsoever to have the internet taxation language in this bill. It has failed miserably in other states. Worse, you will force many small businesses to move elsewhere to maintain their income. That’s not right.
Governor, do the right thing please. Do not pass HB 3659 with internet taxation language included.
Dear Gov. Quinn,
The ramifications of passing this bill will actually hurt Illinois. Many people including myself will simply relocate to another state if this bill is passed.
Tech savvy people will find away around this. This state is one of the most expensive states to live in and the taxes are already high enough.
Please veto this bill when it comes your way. Otherwise you will be part of passing a bill that hurts many peoples ability to earn a living while ostracizing them form the world of affiliate marketing and internet income.
If those parties involved realized the huge negative impact this would have, they would all be in favor of NOT letting this bill go through.
You were elected by the people to serve the people – myself and many others are asking you to do just that and do the right thing and serve Illinois residents to the best of your ability and make sure this bill is not passed.
A decision of such volatile nature should not be taken lightly and if this bill is passed you can be sure that the end result will be of a negative result for all of Illinois tax payers and hard working citizens.
More taxes is not the answer. This state needs a financial make over.
Please take some time to read up on this and PLEASE Do the right thing and make sure this does not go into affect.
Sincerely,
Ken Krueger
Chicago, IL
I previously sent 2 emails to the Governor, from his website contact form, and I am disgusted to hear “An insider has told me that emailing the governor will do no good. If you did so, nobody’s listening.” The fact that no one pays attention to the incoming emails from constituents is unpardonable. We are NOT to be ignored! We employ the politicians, not the other way around.
My plan is exactly the same as Chad’s. Not only will I leave IL and take my personal income with me, but my business income, as well. Not to mention the decrease in tax the state will realize from my employees that become unemployed by me moving operations to a more business friendly state.
The state legislature is cutting off their own noses to spite their faces. Obviously, none of them did their homework by researching what has happened to other states that have implemented similar laws. Not only have the other states not realized the windfall revenues they anticipated, they have actually seen a decrease and that decrease can be tied directly to the new tax laws.
Amazon has filed suit against the State of New York and it is my belief they will prevail. When that happens, all the overbearing laws like this will likely be found to be unconstitutional. Unfortunately, for IL, it will be too late. They will not be able to plug the hole in the bucket at some time in the future.
Governor Quinn,
I understand that your legislature has passed HB 3659 and will submit it to you for approval. I appreciate that our state has dire financial matters and that passing HB 3659 can appear to be a means of raising tax revenue.
The net effect will be, however to tax revenues for the state of Illinois. As I’m sure you are aware, Amazon (by far the internet’s largest retailer – 3 times as much revenue as the company who is 2nd) will cancel all affiliate relationships with Illinois residents if this bill passes.
This action will be followed by similar actions from other companies who sell via affiliates, some of whom are located in the state of Illinois.
Many residents of the state of Illinois, like me, have replaced their traditional incomes with income made by marketing affiliate products online. Illinois ranks 48th out of 50 states in new job creation so for many of us it wasn’t like there were many viable options. This bill will terminate the income of a significant number of Illinois residents. So, for the small amount of sales tax revenue received you will lose more than that amount of income tax and force an exodus of Illinois residents.
If I were a salesperson for a company located in New York and I sold products to a client in Texas, is it required that the company collect and pay sales tax in Illinois just because the salesperson lives there. Of course not. There would be an uproar if that were even proposed. And yet that is exactly what this legislation proposes to do.
I can’t imagine a single company maintaining a relationship with Illinois based affiliates. Your are about to turn Illinois into an affiliate desert and drive businesses and individuals by the hundreds out of the state.
It’s critical that you veto HB 3659.
Governor Quinn,
Please veto HB 3659. The bill is ill-conceived. Enactment will reduce commerce, revenue and state tax income (not increase it).
Illinois needs the revenue and jobs. Kill this bill.
Jim Broline
Burr Ridge, IL
Dear Gov. Quinn,
Please veto Amendment 3 of HB 3659. I understand that the state has a budget crisis and that raising revenue is important–however this bill stifles small business and will not have the desired outcome for our state. Let’s find ways to increase revenue that don’t put small businesses in a bad position.
Sincerely,
Nathan M. Beauchamp
Oak Park, IL
Dear Gov. Quinn,
I join the many other voices attempting to get your attention regarding the damage that will be caused by Amendment 3 of HB 3659.
I understand you are attempting to offset the tremendous debt our great State of Illinois is in, but the passing of Amendment 3 of HB 3659 will force businesses to leave the state. This will actually have the OPPOSITE affect you were hoping for. Please reconsider your position immediately.
Bill Crawford
Illinois Small Business Owner
Downers Grove, IL
Dear Governor Quinn:
I was distressed to learn about Amendment 3 of HB 3659, which will kill affiliate marketing in Illinois. Although I’m a resident of California, I find this kind of bill extremely disturbing, as it will make running a business incredibly burdensome.
Especially with the economy in the shape it is now, it behooves us to make commerce easier rather than harder. Please help businesses to thrive unhindered by red tape and veto this dangerous bill.
Sincerely,
Dustin Sedlacek
[email protected]
Memphis, Tn 38117
901-828-6801
Dear Govenor,
Please veto HB 3659
Please consider that by passing HB 3659 – it WILL result in reduced income tax in the long run – the exact thing you would want to avoid to get more revenue for our
state
Here how:
1–by forcing business owners with affiliate programs who have affiliates in Illinois to cancel their Illinois affiliates due to all the red tape this bill will cause — resulting in loss of income and loss of collectable income tax to affilates and ultimately the state of Illinois.
2-by forcing Illinois business owners and affiliates to move out of state so they are not subject to this bill
Legitimate business owners, both online and offline, require affiliates to run their businesses–These business owners pay many taxes and this will greatly reduce their ability to grow their businesses (in Illinois specifically) for fear of tax scrutiny.
This bill will greatly reduce Illinois’ tax revenue instead of increasing it
Veto HB 3659
Denise Darcy
Brookfield, IL
708-485-5852
Dear Gov. Quinn:
Please veto HB 3659. You have already done enough this week to drive businesses and citizens out of our state. Individualncome tax up 66% and corporate income tax up 46%. No spending decreases. Now you are presented a bill that will kill Illinois affiliates of Internet businesses and reduce purchasing choices for Illinois residents.
On the other hand, IF I manage to retain a job in Illinois, I probably won’t have enough money left after taxes to buy on the Internet anyway. Of course, that means I won’t have money to spend in stores in Illinois, either. That will mean more jobs leaving our state.
Yes, I am a frustrated taxpayer and Illinois voter. You already broke a major campaign promise by backing the huge income tax increase. Do something for the citizens who live here and veto HB 3659.
Governor Quinn,
Please do not sign Amendment 3 of HB 3659.
My business has paid a TON of taxes to Illinois, and a lot of my revenue has come from affiliate sales. If companies like amazon.com terminate their agreements with me because my business is based in Illinois, I may need to simply move my business out of state. I live near the IL/IN border so this would not be difficult.
This bill will undoubtedly result in loss of tax revenue for Illinois, not an increase.
Chad Kimball
Arbor Group Associates, Inc.
Box 9585
Chicago, IL 60609
773-336-7388
Dear Gov. Quinn:
You, Madigan and the rest of the IL state government are a joke. I’m trying to think of something funny to say, but how am I supposed to make a joke about a joke.
Governor Quinn,
The residents of Illinois are happy that you are trying to do something to fix the budget crisis in our state. However, Amendment 3 of HB 3659 will kill MANY small businesses in Illinois and will drive companies that offer Affliate Marketing deals out of the state. This will result in less business and thus less income for the state.
We understand the need to raise taxes, but Amendment 3 will result in lower tax revenue for the state and higher costs because more people will need to depend on money from the state to support themselves. I say Yes to HB 3659 but ONLY AFTER amendment 3 has been removed from it.
-Jean Pickering
President and Social Media Director for The Tektite Group, LLC.
How many different reasons can give us to pack up and leave?
This is probably one of the dumbest, most backwards thinking pieces of legislation I’ve ever seen. Instead of having money flow into the state of IL, all affiliate commissions, which I’m sure is substantial, will stay away, and make IL even more bankrupt than it already is.
Kyle Robinson Ltd.
5363 Driftwood Ct
Lisle, IL 60532
Dear Governor Quinn,
As an Illinois resident, I’m very concerned at the direction the state is taking regarding business. In today’s economy, the backbone for recovery is business. We are looking at a double whammy to business growth between the potential corporate and individual tax increases along with the tax on affiliate marketing.
The net result will just be a decrease in taxes collected. We will lose businesses in IL. There would still be 47 states happy to have these companies and all their employees. Employees will either move with the business or those employees will end up on unemployment.
I understand that the state has budget problems. Most individuals and businesses have problems now as well. Drive through our neighborhoods and look at the homes that have a foreclosure note pasted to the front door. Drive through our commercial and industrial parks and look at the empty buildings. The house and senate are on the way to creating a ghost town out of this state.
Amendment 3 of HB 3659 will simply result in companies like Amazon.com terminating their relationship with IL based affiliates. They have already sent out a note to affiliates in IL. They did terminate relationships in the other 2 states that enacted similar tax collection schemes. So if enacted, not only will the state not be able to collect this additional tax, but the state will no longer be able to collect the personal and/or corporate taxes of the companies that go out of business while we support more people on unemployment.
Note that I do not currently do affiliate marketing, but I am concerned about the state I was born and live in.
Please save jobs, grow business and Veto Amendment 3 of HB 3659.
Thank you,
Jeff Martyka
Lake Zurich, IL
Governor Quinn – I urge you not to sign this oppressive sales tax into law. If enacted, it will drive entrepreneurs and other small business owners out of the state, negatively impacting on a net basis not only the job market but the revenue the state will receive from those busineses.
I know that Illinois-based Sears is leading the charge on this legislation through IRMA as a putative means of leveling the playing field with the Amazons and Zappos of the online world. However, I would urge you to keep in mind that it was that same Sears that backed your opponent in the recent elections. And, moreover, Sears is clearly making plenty of money – this is just an transparent attempt to make more for its greedy out of state owners at the expense of many hard-working Illinoisians.
Thank you for your attention to this important matter.
Dear Governor Quinn.
Apparently you have not learned the lessons from Gov Oglivy, who mercilessly raised state income taxes and was summarily thrown out of office in the next election.
It appears that the most important thing is keeping the Illinois Government running at Status Quo, on the backs of small affiliate internet marketers who are just trying to eek out a living, so they don’t have to file for unemployment compensation.
This bill makes no sense, and should not be signed by you. You will severely effect a large number of people who are running small business, reduce their revenue, their ability to buy goods and services in Illinois, and force them to move their families and businesses to another state more deserving of their efforts.
I was distressed to learn about Amendment 3 of HB 3659, which will kill affiliate marketing in Illinois. I’m a resident of Illinois and I find this kind of bill extremely disturbing, as it will make running a business nearly impossible and people will stop doing business with any connections to Illinois. You will put Illinois out of the internet loop and destroy Illinois business.
Please do not do that. I get all my books from Amazon and if they quit dealing in Illinois I am a dead duck and back to the cave. Monte Meldman MD
Dear Governor Quinn,
I’m writing this in hopes that you will change your mind and not sign HB 3659 as it currently is written. The immediate effect of this law will have several large retailers simply pull and and all affiliate programs here in Illinois. Many small businesses rely on the revenue generated by affiliate programs and this will cause them to close, alter their offerings and services, or move out of state.
The bill is a protectionist measure and, instead of creating a fair and level playing field for traditional brick and mortar stores, will actually create an unfair advantage for stores here in Illinois.
Governor Quinn,
Money goes where it is treated best. If this bill goes through, you’re going to have money leaving Illinois instead of the other way around… don’t let the bill go through!
-Catherine Law
As an Illinois business owner, I clearly understand the dire financial straights that the state of Illinois is currently in, and understand the need to cut expenses and increase revenue. Businesses of all kinds find themselves in these situations constantly. However, when the ‘solution’ to the problem serves to further exacerbate the future financial situation by reducing revenue of businesses in the state and forcing businesses to relocate in order to stay competitive in the online environment, then it is not really a solution at all.
Though I do not conduct affiliate marketing, as an Illinois business, this proposed tax will still have an impact, as we conduct business online with other states, which would subject our customers to a sales tax even for our out of state customers that they would not have to pay if they purchase from our competitors. Due to this uneven playing field, our business would slowly wither and die. In order to avoid this inevitable decline in our business, we would have to move our company outside of the state, taking our jobs with us, and forcing our employees to sell their homes in the process.
We are just a single business that will be forced out of state…what about the thousands of others that also conduct online transactions with other states.
This section of the proposed bill needs to be reversed before the damage to our economy is irreversible.
Please stop this bill from becoming law.
This really is a ridiculous way to get the state out of its financial problems. The internet has opened up a whole new way for individuals to make a living. Especially those people who for one reason or another are house bound. There may be nothing wrong with their brains but physically they cannot get about easily.
What are they to do if this legislation is signed and nobody in any other state will let them be affiliates? I see a great deal of uproar from those individuals if this is signed into law.
I send people to buy products on Amazon from the above website. If this passes, I just might move permanently to France! And Illinois will lose the revenue from my growing businesses. I now have 9 websites and they are growing.
Governor Quinn,
The unconstitutional tax collection scheme (Amendment 3 of HB 3659) that sits on your desk waiting to be signed will negatively affect an untold number of Illinois residents and their current income – and ultimately the amount of tax revenue you now collect. I implore you, Governor Quinn, to follow the lead of the more than a dozen states that have already rejected this bill. Please veto.
Stephanie Trahd
Illinois Small Business Owner
More in Store Marketing, LLC
I feel the state of Illinois has over stepped there bounds by charging a sales tax on e-commerce affiliates. All that will do is kill business opportunities in Illinois.
I was distressed to learn about Amendment 3 of HB 3659, which will kill affiliate marketing in Illinois. I am a resident of Illiinois. I find this kind of bill extremely disturbing, as it will make running a business incredibly burdensome.
Especially with the economy in the shape it is now, it behooves us to make commerce easier rather than harder. Please help businesses to thrive unhindered by red tape and veto this dangerous bill.
It will actually reduce tax revenues for the state of Illinois. As I’m sure you are aware, Amazon (by far the internet’s largest retailer – 3 times as much revenue as the company who is 2nd) will cancel all affiliate relationships with Illinois residents if this bill passes.
Neal Siegel- President Tri-media
Wilmette, IL
Dear Governor Quinn:
I understand your concern over our economic status here in Illinois–it is currently a nightmare and you are doing everything you can to rectify the situation.
My fear is that taxing the affiliate market will actually do our situation more harm than good. I am happy to pay income taxes from the affiliate sales. Unfortunately, if you inflict a separate tax on those affiliate sales, companies outside Illinois who are selling to clients outside Illinois based on my referral will probably not want to deal with this added layer of work. They’ll just take the approach Amazon is planning to take–they’ll refuse to do business with Illinois-based affiliates. This will be a loss of revenue for me–which means my income will be reduced–and you will not see the income taxes for those dollars. We all lose. Please amend the new tax legislation to remove that line item.
I wish you success with the work ahead.
Sincerely,
Catherine
Governor Quinn,
When times are difficult we all must sometimes make difficult choices.
However, moving myself and my business out of the state of Illinois will be and easy decision if this sales tax bill is approved.
Don Trosper, Business Owner
Dear Governor Quinn:
I was distressed to learn about Amendment 3 of HB 3659, which will kill affiliate marketing in Illinois. Although I’m a resident of California, I find this kind of bill extremely disturbing, as it will make running a business incredibly burdensome.
Especially with the economy in the shape it is now, it behooves us to make commerce easier rather than harder. Please help businesses to thrive unhindered by red tape and veto this dangerous bill.
Sincerely,
Melissa Dinwiddie
[email protected]
Mountain View, CA 94043
650-938-3939
Governor Quinn, I understand that your legislature has passed HB 3659 and will submitted to you for approval. I appreciate that your state has dire financial matters and that passing HB 3659 can appear to be a means of raising tax revenue.
It will actually reduce tax revenues for the state of Illinois. As I’m sure you are aware, Amazon (by far the internet’s largest retailer – 3 times as much revenue as the company who is 2nd) will cancel all affiliate relationships with Illinois residents if this bill passes.
But, it will impose a hard choice on many small businesses as well. I have spoken personally with a small company in Nebraska. They sell through affiliates in many states, including Illinois. These affiliates sell to customers nationally. If this Nebraska company sells to a customer in California but through the Illinois affiliate, they would be taxed.
While that may seem a trivial transaction, that small Nebraska company simply doesn’t have the resources to manage the byzantine jurisdictions that their transactions will pass through if tax laws like this one are passed. They would simply cancel their Illinois affiliate relationships rather than risk a complaint from taxing authorities.
It’s critical that you veto HB 3659.