History of the Advertising Tax

The advertising tax (née Amazon tax, affiliate tax, and Internet tax) issue is a threat to affiliate marketers across many states these days, but where did this legislative menace originate?

For the uninitiated, the advertising tax is essentially a plan to tax any Internet transactions from merchants who have affiliates in a given state.

The origins of the advertising tax were among the dubious achievements of disgraced former New York state governor, Eliot Spitzer, back in November 2007.

After an uproar, Spitzer backed down on the plan. But then he started working on it again just before the hooker scandal that bounced him from office.

I had hoped his departure from state government would take the plan to scapegoat affiliates with it.

But his successor, David Paterson, was interested in the plan, too.

And so, the wheels on this runaway train of bad legislation were back on, thanks to Governor Paterson, though his political life appears to be short lived, too.

Maybe the next Governor of New York can reverse this poorly conceived legislation, which has proven to worsen state budgets and deter business.

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