PROPOSED SALES TAX POSES NEGATIVE IMPACT FOR WCQS

June 26, 2009
We were recently informed how the state's proposed internet sales tax will have a negative impact on the affiliate purchasing programs we have initiated to help support WCQS. In a nutshell, WCQS will lose its opportunity to earn a portion of purchases made by our listeners from affiliate vendors via our website. Following is a summary of this issue and how the state's proposed tax will impact WCQS and other non-profit organizations. Further below is a draft of a message you can send to your state legislators about this issue, if you are inclined to do so.

Dear friend of WCQS,

Legislation is proposed in the North Carolina General Assembly that would place a sales tax on internet sales. While we support our state's efforts to address its budgetary shorfall, this particular legislation can have a detrimental effect on WCQS. Many WCQS listeners make internet purchases via our website from affiliate vendors who donate a portion of their sales to the station. One example of these is Amazon.com. Amazon has given us notice that they will discontinue their affiliation with WCQS (and their other NC affiliates, including other non-profit partners) if a sales tax is implemented. In fact, they have already suspended their affiliate programs in anticipation of this legislation passing, which would be effective immediately if passed.

Loss of our Amazon affiliation would mean that we would lose this new and growing revenue stream, and these funds would not be available for us to use for our public service programming. OVERSTOCK.COM, while not a WCQS partner, is another vendor has discontinued its affiliate program in other states where this tax was imposed. The current WCQS affiliate relationships that would be damaged are our Shop & Support WCQS programs with Amazon and ArkivMusic.

You can help WCQS retain the income from our affiliate vendor program if you contact your state legislators and let them know that passing an internet sales tax will hurt WCQS (and other non-profit organizations) and our ability to continue provding our unique public radio services to Western North Carolina. Let them know how much you listen to and depend on WCQS, and don't want legislation passed that can endanger this soure of income for your public radio station.

The easiest way to do this is to e-mail the Representative and Senator who represent you in the General Assembly (contact information for Western North Carolina delegation serving the WCQS coverage areas is below). Tell them that you understand the General Assembly has a difficult job this year to balance the budget, but passing an internet sales tax will cause internet vendors to discontinue their affiliate programs with non-profit organizations like WCQS and eliminate a source of revenue that would otherwise support our public service broadcasting. Some suggested language follows (which you can copy/paste), but please customize and personalize your message if you can. Thanks in advance for your help.

SAMPLE E-MAIL: Subject: Opposition to Internet Sales Tax for Non-Profit Organization Affiliate Programs

Dear (Senator / Representative),

I am well aware of the challenge you face to balance the state budget, but am against the creation of an internet sales tax on affiliate programs for non-profit organizations. This tax would have a negative impact on this new and growing revenue stream for non-profit organizations. As an example, my public radio station - WCQS in Asheville - has been informed by its affiliate partners, AMAZON.COM and ArkivMusic - that if North Carolina passes an internet sales tax, it will discontinue its non-profit affiliate programs in the state. This will deny WCQS the share of the sale donated to the station when listeners make an Amazon or ArkivMusic purchase through the affiliate links on the WCQS website.

The station has been informed these and other vendors have discontinued similar programs in other states where an internet sales tax has been implemented. Please work to exempt internet sales tax on purchases through affiliate programs with non-profit organizations.

Thanks very much.

Sincerely,

(Your Name)

HOUSE Susan Fisher - Buncombe (114)
Susan.Fisher@ncleg.net
NC House of Representatives
300 N. Salisbury Street, Room 420
Raleigh, NC 27603-5925

Phillip Frye - Yancey, Mitchell (84)
Phillip.Frye@ncleg.net
NC House of Representatives
300 N. Salisbury Street, Room 602
Raleigh, NC 27603-5925

Bruce Goforth - Buncombe (115)
Bruce.Goforth@ncleg.net
NC House of Representatives
16 W. Jones Street, Room 1220
Raleigh, NC 27601-1096

W, David Guice - Henderson, Polk,Transylvania (113)
David.Guice@ncleg.net
NC House of Representatives
16 W. Jones Street, Room 1015
Raleigh, NC 27601-1096

R. Phillip Haire - Haywood, Jackson, Macon, Swain (119)
Phillip.Haire@ncleg.net
NC House of Representatives
300 N. Salisbury Street, Room 639
Raleigh, NC 27603-5925

Carolyn K. Justus - Henderson (117)
Carolyn.Justus@ncleg.net
NC House of Representatives
16 W. Jones Street, Room 1023
Raleigh, NC 27601-1096

Ray Rapp - Haywood, Madison,Yancey (118)
Ray.Rapp@ncleg.net
NC House of Representatives
16 W. Jones Street, Room 2213
Raleigh, NC 27601-1096

Roger West - Cherokee, Clay, Graham, Macon (120)
Roger.West@ncleg.net
NC House of Representatives
16 W. Jones Street, Room 1004
Raleigh, NC 27601-1096

Jane Whilden - Buncombe (116)
Jane.Whilden@ncleg.net
NC House of Representatives
16 W. Jones Street, Room 1303
Raleigh, NC 27601-1096

SENATE Tom Apodaca - Buncombe, Henderson, Polk (48)
Tom.Apodaca@ncleg.net
NC Senate 16 W. Jones Street, Room 1127
Raleigh, NC 27601-2808

Martin L. Nesbitt, Jr. - Buncombe (49)
Martin.Nesbitt@ncleg.net
NC Senate 300 N. Salisbury Street, Room 300B
Raleigh, NC 27603-5925

Joe Sam Queen - Avery, Haywood,Madison, McDowell, Mitchell,
Yancey (47)
joesam.queen@ncleg.net
NC Senate 16 W. Jones Street, Room 1117
Raleigh, NC 27601-2808

John Snow - Cherokee, Clay, Graham, Haywood, Jackson, Macon, Swain,
Transylvania (50)
John.Snow@ncleg.net
NC Senate 16 W. Jones Street, Room 2111
Raleigh, NC 27601-2808