Affiliate marketers in New York have reason to follow politics – and it’s not the presidential race. Instead it’s a new law (pdf of law) that has retailers collect taxes for sales through affiliate marketers based in New York. The law applies to all online transactions for companies that have no physical presence in New York. It starts June 1, 2008.
The bad idea started with Governor Spitzer, and was recently signed into law by New York’s new governor David Paterson. They figured it would be an easy way for them to collect more taxes. Affiliates make money by referring people to products and services online. They get a commission when someone makes a purchase.