National Etailing and Mailing Organization of America
NEMOA | News Detail
Alabama Tax Update: Pledges Trickling In, But More Funding Needed Now
            Paul Miller
            January 28, 2016
Did you get this letter? If you didn’t, you will.
Any idea what you're going to do about it?
We have a plan, but we need your support now.

PLEASE NOTE: If you are not the CEO, CFO or owner of your company, by all means make sure you pass this on to them while something can still be done.
Update On This Dire Situation
The ACMA is the only entity willing to oppose a damaging nexus-zapping sales tax-collection regulation in the state of Alabama that went into effect on January 1st. Since we started last month, we've only received slightly more than one-half of the funds (in pledges) required for us to mount a legal challenge.

Unless we can collect more, we'll have to abandon this effort. So far, several of our loyal members and a few non-members have stepped up with generous pledges, but we need more commitments soon lest catalog and online businesses nationwide are left to deal with not only Alabama, but the other copycat states sure to follow if Alabama is left unopposed. We strongly urge you to read the details below and make your pledge today...
Why This is So Urgent
Hopefully, you've heard by now that Alabama has begun noticing all remote marketers doing >$250,000 in annual sales in Alabama (effectively, $25 million-plus companies) that they must begin collecting and remitting sales tax on all sales of tangible goods made to Alabama residents. This is a direct challenge to the Quill precedent tested in the Supreme Court twice. Currently, no group or organization is stepping forward to oppose this. ACMA is willing to take on this fight to preserve the Quill precedent, but currently lacks the resources to mount a legal challenge without additional funding.
It’s an easy business case to make.

Our Ask
We need $20,000-per-company pledges to fund this specific legal action. If $20,000 is too steep for your company, make a fractional pledge. Every dollar is material at this point. Funds collected will be held in a special account and be used only for out of pocket expenses related to this fight. They will not support ACMA personnel or association overhead.

How to Pledge
Simply send a private email to ACMA VP Paul Miller and provide the amount you wish to pledge, your name, title, company name, and phone number. If and when we get enough pledges, we will invoice you and start a legal action.
Further Details
If this money cannot be raised, the Alabama action will be left unchallenged, the contagion will spread to other states. As we have seen with other creative ways to pierce nexus, other states will rapidly adopt the Alabama example. Soon enough, the Quill precedent will be effectively destroyed and remote marketers will have to do battle with virtually every state seeking sales tax on out-of-state marketers. This unconstitutional act should not go unchallenged!

You Remain Anonymous
ACMA will be the named plaintiff, keeping your company out of the public eye and not subject to consumer or regulatory blow-back. ACMA will keep all donors completely anonymous. 

A Winnable Case
Because the Alabama regulation is of questionable constitutionality, we feel we have a good case, but only if we move right away to oppose it. But if the industry does not mount a legal challenge soon, our case will weaken significantly.
We are happy to provide you with more information or to answer your questions.

Hamilton Davison
President & Executive Director
American Catalog Mailers Association

© 2016 American Catalog Mailers Association, Inc. We urge you to share this with others in the catalog and remote/direct sales industries and encourage their support as well.

Published: 01/28/16