Quote:Under the policy, affiliates would have been treated as representatives of the company, which is enough to establish a physical presence in a state.
And I thought California was bad. ;D
Update: the proposed tax isn't dead after all:
Quote:In November, Spitzer chucked a plan to collect the sales tax because he thought it was "not the right time" to increase the tax burden.
The state Department of Taxation and Finance quietly issued a memo last year that would have targeted companies that do online business in New York, but don't have brick-and-mortar presences. The agency dropped the idea within days after news organizations began reporting on the issue.
But now it's made its way into the state budget.
"He included it in the budget so the legislature would be able to weigh in on it," spokesman Jeffrey Gordon said. "He determined that was a better process to go through."...
full article:
http://biz.yahoo.com/ap/080212/internet_....html?.v=2
Update: Amazon.com sues New York State
Quote:Amazon.com has filed a lawsuit challenging New York States new law forcing online retailers to collect sales tax on shipments to state residents...
The companys complaint argues that the statute is overly broad and vague. It is impossible, Amazon wrote, for it to determine which of its affiliates are actually in New York State...
full article:
http://www.nytimes.com/2008/05/02/nyregi...f=nyregion
Quote:In lobbying for the bill, the industry group representing New York retailers had argued that the exemption from the sales-tax collection requirement gave out-of-state online retailers an unfair competitive advantage.
I agree it gives them a competitive advantage and that is why I hope Amazon LOSES ITS FRIGGIN' LAWSUIT!!!!!!!!!!!!!!!
Update: Overstock will dump its New York State affiliates in order to avoid collecting sales tax:
Quote:Overstock.com has become the first major Internet retailer to cancel its relationship with affiliates in New York...
The companys goal is showing the New York governor and legislature that this is bad for New York businesses, Mr. Johnson said. There are affiliates in New York who will see their business go away because of a not-so-thoughtful action by the New York State legislature.
Mr. Johnson said Overstock has 3,400 affiliates in New York State, though not all of them are active. The largest is NextJump, a provider of employee benefit programs. It also cut off some comparison shopping services, such as Jellyfish...
full article:
http://bits.blogs.nytimes.com/2008/05/14...index.html
NY State clarifies the new law:
Quote:The New York State Department of Taxation and Finance has issued an interpretation of a controversial law enacted this year requiring some online merchants with New York-based affilates to collect state sales taxes...
The opinion, called a Technical Services Bulletin, says online retailers engaged in pure vanilla affilate marketing programs with New York-based web sitesthat is, the affilate is only hosting a link on its site and not marketing the link in e-mails, flyers, or phone calls to New York residentscan overcome the presumption of nexus in the state, Isaacson says. Nexusor physical presence in a statetriggers a requirement that a retailer collect sales taxes from consumers from that state. It can be rebutted if it can be proven that there is no additional activitythat the relationship is limited to link referral and includes no other solicitation activity, Isaacson says...
full article:
http://www.internetretailer.com/dailyNews.asp?id=26525