Archive for the ‘tax’ Category

The Public Domain Enhancement Act

Tuesday, January 11th, 2011

Finding pictures and other raw media to enhance a blog can be frustrating – if, that is, you are staying clear of copyright infringement. Of course it would be  much easier to find great images for free and legal use if there were more material in the public domain.

A bill that attempted to get that done was the Public Domain Enhancement Act, introduced in the House of Representatives in 2003 as H.R.2601. It would have required the payment of a $1 maintenance fee on copyrighted works older than 50 years.

That’s not a big out of pocket expense. But by requiring some slight affirmative act by people wishing to maintain their copyright, the law would have caused a slew of works to enter the public domain in cases where the creators didn’t care about retaining the copyright.

Unfortunately, cheap-skates they are, the entertainment lobby defeated the bill.

But maybe in the future? Who knows. It would be nice.

You can read more about it from Larry Lessig (who called it the Eric Eldred Act) and Wikipedia.

Philadelphia Slaps Blogs with $300 Tax

Friday, August 27th, 2010

mastheads of blogs MS Philly Organic and Circle of Fits blogsVery interesting article: Valerie Rubinsky in the Philadelphia City Paper: Pay Up: Got a blog that makes no money? The city wants $300, thank you very much.

Philly is not taxing all blogs – just blogs that are set up to make money – any money, no matter how small. If a blog is designed to make a profit, even if it doesn’t, the City of Brotherly Love requires a business privilege license (a $300 one-time fee or $50 per year) plus taxes on the profits.

So that means Philadelphia is after Sean Barry’s Circle of Fits, a music blog hosted on Blogspot, which has made $11 over two years, according to the article.

Also getting billed is MS Philly Organic, a blog by Marilyn Bess that, combined with earnings from some posts for eHow, has brought in about $50 over three years.

Rubinsky reports that City Council members Bill Green and Maria Quinones-Sanchez have proposed reforming the law to help make the city a more accommodating place for small businesses. But while the reform would exempt the first $100K in profits, nano-sized online “businesses,” such as ad-hosting blogs, would still have to pay $50 per year or $300 upfront for a license. Some reform.

Apparently the tax-collector letters went out to bloggers who did the right thing and reported tiny-sized revenues on their income tax returns.

I’d like to hear a tax attorney weigh in on whether there is serious argument that these bloggers are not businesses engaged in an activity for profit since the amount of money they are earning is trivial and undoubtedly doesn’t cover their expenses. But I’m not a tax attorney, so I’ll have to leave that to someone else.

My advice for most bloggers is this: Dump the ads. Why bother putting ads on your blog unless it is going to make you substantial amounts of money? Ads clutter up blogs. They look terrible, and they are often for products that are either ridiculous (like herbal cures) or kindov depressing (like life insurance). That detracts from a user’s experience. And if ads cause you to have legal trouble – and even trying to figure out if you have legal trouble is a kind of legal trouble – then you should flush them down the drain.

In fact, if you are really in it for profit, then you are probably better off doing whatever it takes to build readership in the near-term – and in my opinion, that means turning off the ads. If and when your readership ever gets big enough that ads would bring in real money, you can start providing advertising space at that point. Take a cue from big start-up ventures. None of them try to make money in the early years. For a VC-funded start-up, making money at the beginning usually means that you aren’t trying hard enough to grow and gain market share.

More: Lyrissa Lidsky on PrawfsBlawg: (Business) License to Blog (with good discussion in the comments)

(Ha’p: Media Law Prof Blog)