US Senate Passes Marketplace Fairness Act
FollowThe PMA has issued the following press release:
Performance Marketing Association Congratulates US Senate for Passing Marketplace Fairness Act
The 76,000 small Internet businesses wiped out by states’ unconstitutional attempts at regulating interstate commerce are closer to getting back in business.
CAMARILLO, May 6, 2013 – The Performance Marketing Association (PMA) expresses thanks and gratitude to the US Senate for passing the historic Marketplace Fairness Act (MFA) today.
This is the first and critical step in reversing the devastation caused by the passage of unconstitutional ‘Affiliate Nexus Tax’ laws passed by 9 states. These state laws have wiped out 76,000 small Internet advertising businesses since 2008, devastating one of the fastest growing technology sectors in the US.
The ‘Affiliate Nexus Tax’ laws created a loophole for over 1,000 online retailers: they could avoid collecting sales tax for those 9 states if they sever advertising agreements with these 76,000 Internet advertising businesses. The results were not at all what was intended: these 9 states not only did not collect new sales taxes from online retailers, but they lost income tax revenue from the devastation to the incomes of those 76,000 small businesses.
“Passage of the Marketplace Fairness Act will require all retailers, whether online or offline, to collect sales tax for all states, and remove the ability to avoid collection obligation if they sever Internet advertising agreements,” said Rebecca Madigan, executive director of the Performance Marketing Association. “This will allow online retailers to reinstate their advertising agreements and get 76,000 small Internet advertising companies back in business” Madigan concludes.
The PMA looks forward to the US House of Representatives picking up the bill and passing it quickly. The PMA would, in particular, like to thank the bill’s key bi-partisan sponsors who have advocated tirelessly for this change for many years: Senator Mike Enzi (R-WY), Senator Dick Durbin (D-IL) and Senator Lamar Alexander (R-TN).
The Performance Marketing Association (PMA), headquartered in Camarillo, Calif., is a not-for-profit trade association founded in 2008 to connect, inform and advocate on behalf of performance marketing, a multi-billion-dollar marketing channel, which comprises more than 200,000 businesses and individuals. Continued growth of the performance marketing space is expected as advertisers, facing small budgets and big expectations, increasingly look to performance-based marketing initiatives to expand their business. Additional information is available at: http://www.performancemarketingassociation.com
Media Contact:
Rachel Guillot 805.253.3762
Performance Marketing Association
rachelg@performancemarketingassociation.com
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Performance Marketing Association
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