[Jorge - JRami]

Amazon said it would reopen its Hawaii program if the veto stands.

http://www.google.com/hostednews/ap/article/ALeqM5im7cvATyCh1bU27nhI_EwK9DBpnQD995NFQO0

Hopefully more will follow

:up:

[MattMcWilliams]

That is GREAT news! What a leader Gov. Lingle is! Way to stand up for what is right.

[writerguy]

How ironic -- we find this out the day after CSN Stores whacked their ties with affiliates in Hawaii.

Will CNS Stores now be considering restoring/reinstating Hawaii affiliates -- and affiliates in other states if they, too, veto these idiot Internet sales taxes??

(I'm NOT in Hawaii, or any of the states who've enacted this tax -- at least I haven't see/heard anything about Missouri doing so yet.)

[markwelch]

CSN expressly said it would welcome back affiliates in any state that repeals the law: (http://forum.abestweb.com/showthread.php?t=121174)

> "In the event that {state} repeals this law, we would be happy to bring you back on as an affiliate of CSN Stores through ShareASale, but understand if that does not interest you." <

It's nice that they recognize that the short-notice cancellation might cause publishers to choose not to re-join the program.

[mellie]

Hopefully everyone waits until it is definite she will veto; she had to give 10 days notice. Legislators will also have an opportunity to override.

Merchants should contact their own lawyer and accountant to see what this all really means for now. Intent to veto is very different from vetoed.

[MattMcWilliams]

It's nice that they recognize that the short-notice cancellation might cause publishers to choose not to re-join the program.

I wonder WHY they did so in the first place?

Why not let the issue settle for a week or two even and then do it if needed. It just seems like they jumped the gun and now will be crawling back.

[markwelch]

Matt, the issue of "when to terminate" was discussed earlier (http://forum.abestweb.com/showthread.php?t=121088): most of these laws are worded to be "immediately effective," and some even claim to have retroactive effect. Large merchants (like Amazon and CSN) might ship orders meeting the law's "threshhold" (whether $2,000, $5,000 or $10,000) in just a few days.

If merchants don't terminate quickly, they might be "trapped" as Amazon was in New York: by shipping orders that exceed the threshhold (to in-state customers, referred by in-state publishers, between the law's effective date and the date of termination), the merchant has met the nexus requirements and must collect tax (or declare its intent not to obey the unconstitutional law).

Either way, if a large merchant like CSN waits a week or two, it might be "too late" for termination of its in-state publishers to impact the law's reach.

I know absolutely nothing about Hawaii's governor, but some politicians would gladly "declare their intent to veto" in order to trick merchants into delaying action, only to enact the law after the merchants are "trapped." Even if the governor vetoes the bill, if the legislature overrides the veto, the law would apparently still be retroactive to July 1.

It is never safe to act (or refrain from action) in the expectation that a legislature will do something (or not do something), no matter how certain it seems. (Right now, I expect that California will enact the "Amazon Tax" and I will receive dozens of termination notices this month. I'm not yet stripping links based on this assumption, but if I decide to add some links to some sites, I would only include merchants who collect California sales tax.)

[Alan Hamilton]

I understand why the merchants like CSN would pull the plug. They have little choice. But in this case I am very proud of the governor for his veto!! Congratulations to all Hawaii affiliates - you obviously have a governor who is pushing back against the taxation madness that is rampant right now. Good for you Hawaii - "tiny taxes, in the wine. Tiny taxes, makes me feel fine. tiny taxes, makes us glad all over. with a feelin that we're gonna love it till the end of time!" :)

[Rehan]

Just saw this on Twitter and RT'd it:

http://www.hawaii247.org/2009/07/01/governor-lingle-vetoes-online-tax-bill/
Governor Lingle vetoes online tax bill

[Maddy Mac]

This does seem like it is a win for Hawaii affiliates. Hopefully it will all work out in the end

How ironic -- we find this out the day after CSN Stores whacked their ties with affiliates in Hawaii.

Will CNS Stores now be considering restoring/reinstating Hawaii affiliates -- and affiliates in other states if they, too, veto these idiot Internet sales taxes??
I couldn't agree with you more on this, WriterGuy. We had to do what we had to do, but I did include a part in the termination emails that if laws change, people are more than welcome to return to our program, as Mark pointed out. I do hope that we are able to work with all states once again, and that affiliates reconsider a partnership. That would be the best case scenario. I guess we'll have to wait and see what happens, and in the mean time, keep contacting our legislatures and keep our fingers crossed.

[kgarcia]

If anyone is interested, the official "statement of objection" from Governor Lingle's office is located here: http://hawaii.gov/gov/initiatives/objection/HB1405%20SOBJ.pdf