Commission Junction on the New York Affiliate Tax
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We are nearing the date (June 1, 2008) when the state of New York will start charging taxes for online transactions for companies that have no physical presence in the state.
As I reported last week, Overstock dropped their New York affiliates to avoid their customers having to pay the tax.
That move threw affiliate marketers into a frenzy and many affiliate and merchants have been wondering what will happen next.
ShareASale announced that they are making a report available to merchants regarding their New York affiliate-referred transactions.
And now Commission Junction has sent a notice to affiliates with their take on the issue:
As you may already know, the State of New York recently enacted new legislation that addresses tax registration, collection, and other time-sensitive obligations. As with all laws, this law may or may not apply to you and your business. We are actively monitoring the law and will use reasonable efforts to protect ourselves and our publishers as we deem appropriate.
The application of the law is dependent on particular business and factual circumstances, and Commission Junction is not in a position to provide legal and tax advice regarding this law. However, we encourage you to perform the appropriate due diligence as it relates to your business.
For your convenience, we have provided a link to a memo from the New York State Department of Taxation and Finance, Office of Tax Policy Analysis, Taxpayer Guidance Division that addresses the new legislation:
http://www.tax.state.ny.us/pdf/memos/sales/m08_3s.pdf
Sincerely,
Commission Junction
I understand a similar letter went to CJ merchants.
As far as I know, Performics, LinkShare, and other affiliate networks haven’t released any statements about the issue.
Will this whole debacle hinge on the success of the Amazon lawsuit that challenges the New York law? Stay tuned.
- Posted in Affiliate Managers, Affiliate News
Shawn, I blogged this earlier this AM.
Linkshare has gotten the DMA involved and is having an open conference call with the DMA tax atty and has already provided the DMA legal analysis of the law. IMPORTANT STUFF re affiliates and Nexus!
Linkshare/DMA – Join the New York Tax Conference Call PLUS DMA’s Analysis of the Law
All interested parties need to read that info and be on the conf call if possible!
reply to this commentLinda -
Do you know if anybody is allowed to call in? I assumed it was intended just for New York based folks.
reply to this commentYes you can call in. I just got accepted. I showed them the 7 blogs I've done on about the issue.
But I think all you need to do is say you are a Linkshare affiliate. They didn't ask where I was from. Just sent me the conf code info.
You need to be on the call because I nominated you as our spokesperson for the Q&A session.
See comment #1 about organizing for this call, in my blog link above, plus I sent you an email about it.
reply to this commentThe best way to get back at NY is to fire all NY affiliates. Advertise for affiliates, but say “NY residents need not apply” To heck with NY, idiots
reply to this commentThat was very thought out – so you would put the screws to some innocent, hard working entrepreneurs over a bad idea created by some out of touch legislators?
Cute touch with the “NY residents need not apply” bit; it's evocative of the “Irish Need Not Apply” or INNA signs of the 19th century.
Nice work – you offend me both as an affiliate and as an American with Irish lineage.
Happy trolling.
reply to this commentYes Shawn your on the money. I'm a New York Based affiliate for Commission Junction and that was the exact email I received. It saddens me that this law was actually passed. Pardon my saying this but both Spitzer and Patterson are fools. I frown upon Overstock, however I am proud of Amazon for taking a stand.
UPDATE: May 21, 2008
For some reason yesterday, I did not want to reply to the person above your last comment shawn, but I'm a bit cranky today…
Idiot's? Are we really, hmm… If we were Idiot's, would Amazon file a complaint with the state supreme court? Really, fire all NY affiliates? Idiot's are We? The heck with your offspring's, and may you live a lonely life!
reply to this commentYou don't think that your state will pick this up when they find out if NY wins. I agree with Shawn.
reply to this commentYou don't think that your state will pick this up when they find out if NY wins. I agree with Shawn.
reply to this comment