Sample letter to California Assembley Members on AB 178

{LETTERHEAD}

[Date]

The Honorable First Name Last Name
Member, California State Assembly
State Capitol, Room
Sacramento, California 95814

Subject: OPPOSITION to AB 178, as introduced , February 2, 2009

Dear [Assembly Member Last Name]:

I am a small business owner with a website, and I am in strong opposition to AB 178, which would require retailers that advertise and receive direct or indirect referrals from banner ads and click-thrus on websites, such as mine, to collect sales tax in California.

I am opposed to this bill because it would substantially harm my small business by reducing a large source of revenue that I rely on to survive. This revenue results from providing advertising on my website as part of an “affiliate” or “associate” program with out-of-state retailers.

We not a traditional affiliates or a commission sales force for these retailers. Rather we are paid for performance marketing companies. However, Affiliate marketers DO NOT SELL for the retailer - affiliate marketers advertise. We do not own the customers, we do not transact a sale, we do not accept money for sales, nor do we deliver products or services to consumers.

In addition, the advertising we do for these merchants is no different than pay for performance marketing on television, radio, print, and direct mail. We just create advertising and buy media. We are no different than an advertising agency that is paid on performance.

AB 178 singles pay for performance online advertising out and this creates an extremely uneven playing field for my business with other types of online and offline advertising. This will in turn, will reduce our ability to compete with other forms of advertising.

Insert something here about how you impact the local economy...create jobs, spend money locally, etc. And only use a good story. If you can't think of one, don't do it.

If online retailers believe that doing business with me will result in their having to collect sales tax on all California sales, they likely will sever ties with my business, putting the viability of my business at risk. Such was the case in New York State where Overstock dismantled its affiliates program and hundreds of other business followed Overstock’s example. This left thousands of affiliates – most of which are small- and medium-sized businesses with a major loss of income.

For these reasons, I respectfully oppose this legislation.

Sincerely,

Your Name
Your title
(company name it not on letter head)

Please note, this is just a guideline, you should write what you want. Just make sure to oppose the legislation and tell your assembly member why and how the bill impacts you as a small business.