New York Wants To Charge Affiliates Sales Tax
Talk about a case of too much government! You may have heard about the recent legislation that New York state passed that give it the authority to charge sales tax to ANY entity selling to a resident of the state no matter where they are based. That love also extends to affiliate sales! Can you believe it?
As a result, Overstock.com has cut off all of it’s New York affiliates so no more Big ‘O’ for the Big Apple.
Amazon has decided to sue the state questioning their authority in collected those taxes. Go Amazon! I think your affiliate program isn’t any good (session cookies? come on!) but I am definitely in your corner on this one.
In typically government shark-like activity, other states namely Texas and California, smell blood in the water and are also close to passing similar legislation. I do have hope that none of this will stand up to scrutiny and I also don’t think they this is even enforceable. The cost of any enforcement attempt would likely negate any revenue benefit they could possibly gain. With Amazon’s lawsuit impending, the state of New York will likely just end of losing money to the lawyers at the expense of tax payers. Good thinkin’!
Take a look at reactions across the web:
- New York’s Ambitious Sales Tax Law: Broader Than Amazon and the … - Amazon.com sued New York State earlier this month, challenging a newly enacted law that has serious implications for online advertisements. In April, the New York legislature passed a law designed to increase sales tax revenue from …
- When Will New York Introduce A Google Tax? - Today’s news is that Overstock have decided that they are axing 3400 affiliates in the New York area because of the previously reported “Amazon Tax” – which Amazon are fighting. I think Janet was the first to break the news of the …
- New York Passes Online Sales Tax Law - In addition Amazon says the New York law is unconstitutional based on a 1992 US Supreme Court ruling that claims states are prohibited from requiring out of state retailers to collect sales tax unless the company has a physical presence …
- Overstock.com 1, New York State 0 - New York state’s legislature recently passed a law declaring that any company with affiliates in New York must collect sales taxes on purchases made in that state, effectively inventing sales tax nexus out of thin air. …
- Overstock Drops New York Affiliates - The issue is that New York State had enacted a law that deemed Overstock to have a New York presence simply because it had affiliates in the state and was therefore to be required to collect sales tax on behalf of the state. …
- NY’s “Amazon Tax” Takes First Casualty: Overstock Affiliates - The backlash comes in response to New York’s misguided attempt to collect taxes from online shoppers. Up until now, online retailers have only had to collect sales tax in states in which they have a physical presence. …
Tags: new york, sales tax, affiliate marketing, amazon
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