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Internet Retailer magazine has posted coverage on the upcoming “affiliate tax” in New York state. The new law kicks in June 1, 2008.
Amazon.com Inc. and Overstock.com Inc. each gave a strong message last month to New York State: You may need more tax revenue, but we won’t let you cut into our profit margins without a fight.
In the long-simmering battle between states and Internet merchants over the collection of sales tax, New York upped the ante in April when it amended its sales tax law to cover sales by out-of-state online retailers who get customers through New York-based affiliate web sites. The law targets retailers like Amazon and Overstock, which, because they maintain no physical presence in the state, have been exempt until now from sales tax responsibilities.
I’m glad to see more of the media picking up on this issue. Spread the word and speak out on forums, blogs, etc. about the affiliate tax and let your affiliate managers know what you think about it.
Read the complete article at http://www.internetretailer.com/article.asp?id=26575.