Adperio Successfully Fights to Remove Affiliates From 'Amazon Tax' Bill in Colorado

DENVER, Feb. 22 /PRNewswire/ -- Adperio, led by founder and CEO David Asseoff, fought a successful battle to eliminate references to "affiliates" from Colorado HB 1193. If passed as originally written, the bill would have devastated an entire industry in Colorado at a time when job growth is a top priority.  The amended bill was approved by both the Senate and House, and has moved on to the governor's office for signature.

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Asseoff testified at both the House and Senate Finance Committee hearings, along with Rebecca Madigan, executive director of the Performance Marketing Association, Marc Braunstein, president of ShopAtHome.com, and several individual affiliates.

The original bill would have led to job loss for approximately 4,200 affiliates throughout Colorado in a matter of days.  At issue was whether Colorado could force out-of-state Internet retailers, like Amazon.com and Overstock.com, to collect sales tax on purchases made by residents of Colorado by using in-state affiliates to create "nexus" (a physical presence) in the state.  During the House hearings, examples of affiliates used by committee members ranged from clergymen to bloggers.

"Affiliate marketing can be confusing to people outside the industry and these hearings took place at night after legislators had already sat through hours of testimony on other tax bills," said Asseoff.  "Once they really understood how damaging the bill could be to thousands of Colorado-based businesses, the legislators were much more responsive to rewriting the bill."  In addition to testimony, Coloradoans in danger of losing their jobs, including Adperio employees, used social media tools like Facebook to contact and educate legislators.

"There is only one reason we were able to defeat the advertising tax despite tremendous odds against us: the incredible involvement of affiliate marketers in Colorado. Over 150 consistently reached out to legislators via email, letters, phone calls, personal visits and testifying at committee hearings. If we didn't have this level of passion and involvement, the bill as originally written, targeting affiliate marketing, would have certainly passed," stated Madigan.

The original bill projected $4.7 million in sales tax revenue would be collected from Internet retailers, yet results from an "Amazon tax" bill passed in Rhode Island showed no increase in sales tax revenue because Internet retailers terminated contracts with companies in that state.  After the introduction of HB 1193, Internet retailers began giving notice of contract terminations to Colorado affiliates.  The revised bill focuses on collection of sales tax through Internet retailers or directly from their Colorado customers.

"I applaud legislators from both parties for understanding the devastating ramifications of the original bill – 4,200 jobs lost across the state without any new sales tax revenue being gained – and changing the language accordingly," concluded Asseoff.  

About Adperio

Founded in 1994, Adperio is a privately-held online marketing and advertising agency based in Denver.  The company offers a suite of Internet solutions for advertisers, market research firms and advertising agencies.  Adperio's products and services exceed industry best practices, providing clients with transparent advertising solutions.  The company was recently recognized by Inc. magazine for the third consecutive year as one of The Fastest-Growing Private Companies in America and named as one of the Best Companies to Work for in Colorado by SHRM for the second consecutive year.  For more information, visit www.adperio.com.

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David Asseoff

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SOURCE Adperio