Comments on: Merchants Ban Affiliates Based on New York Tax

By: Marketing News Roundup, January 14

Marketing News Roundup, January 14 — Thu, 15 Jan 2009 12:39:26 +0000

[...] A New York court dismissed Amazon’s objections to paying state taxes, filed after the New York law passed back in May. [...]

By: Anthony.P

Anthony.P — Fri, 03 Oct 2008 15:14:03 +0000

thats bad, I would not do business there.

By: Destiny@Freebeezndealz.com

Destiny@Freebeezndealz.com — Sat, 13 Sep 2008 00:05:04 +0000

And this is a surprise? Destiny@Freebeezndealz.com's last blog post..Free 4 pack of Goody hair elastics

By: Making SEO Google

Making SEO Google — Mon, 21 Jul 2008 14:10:39 +0000

very Good !

By: SEO FAQ

SEO FAQ — Mon, 16 Jun 2008 14:49:40 +0000

I see some responses with links to websites. How do I put a link in my responses? SEO FAQ's last blog post..RSS feed Directory

By: Roderick Ioerger

Roderick Ioerger — Thu, 29 May 2008 16:26:07 +0000

NY is going to lose more in income tax than they will ever earn with illconceived laws like this. Their short term greed is getting in the way of their long term greed.

By: Brick Marketing

Brick Marketing — Thu, 29 May 2008 15:38:25 +0000

We’re surprised something like this hasn’t happened sooner — it will be interesting to see if other states take after New York’s lead.

By: Rick

Rick — Thu, 29 May 2008 12:24:53 +0000

There is a continual misunderstanding of the implications of this law including on this post. If a merchant has an affiliate in New York, and if the merchant has over $10,000 in sales FROM NEW YORK RESIDENTS (not from New York residents using affiliate links), then the merchant has to collect sales tax ON ALL NEW YORK SALES (not just those from affiliate links).

Another point – that if the affiliates do no solicitation the merchant is off the hook ignores the reality that an affiliate can do anything they want to, including direct email contact with New York residents, without the merchant’s approval. Even if the merchant then kicked out the affiliate the next day the marketing already took place and therefore nexus was created.

The only safe route for a merchant that has New York affiliates and New York sales over $10,000 is to remove all New York affiliates from their program until such time as the law is overturned.

By: NoTax

NoTax — Wed, 28 May 2008 21:57:16 +0000

The Democrats will tax everyone to death. I can’t understand why anyone wants a Democrat for President. I guess people love paying more taxes all the time.

By: CT Moore

CT Moore — Wed, 28 May 2008 21:47:22 +0000

I fear that this just might be the beginning of a trend. It's rare that governments let entrepreneurs go untaxed for very long. I think, then, the future of affiliate marketing lies with software that can help networks and their affiliate easily manage such taxation. Some networks already do this: http://blog.shareresults.com/?p=670. Essentially, as affiliate tax becomes the norm, affiliate are going to seek out networks that take care of the paper work for them (like employers deduct income tax off your pay check for employees). Consequently, affiliate networks will need to develop software that can group affiliates according to location and deduct the relevant taxes from their earnings. It's really going to be an accountant's dream. The real nightmare is going to be in accurate reporting. CT Moore's last blog post..9 Ways to Get More Links