Warning – California May Copy NY’s Amazon Affiliate Tax Law
Complete Coverage of the New York Affiliate Tax Issues Here
Here we go, it’s spreading. This could get knarly! Amazon needs to kick this New York law off the books so it does not set a precedence other states can follow. A TON of affiliates and merchants with affiliate programs could be affected by this if it’s allowed to go through in New York and California.
Other States May Copy New York’s Amazon Tax Law – Kiplinger
“California too is mulling legislation that would broaden online sales tax requirements. The aim there is to define the significant business connections a company must have within a state with its online customers before the state can legally collect sales tax: for example, brick-and-mortar stores and distribution centers in the state — or relationships with affiliates and third-party vendors in the state that profit from the Internet transactions.”
The article goes on to discuss how complicated and costly it will be for retailers to install complex tax collection systems.
Another story today about how the New York tax law could spread to other states. Tax-free Internet shopping days could be numbered
In case you haven’t been following, here are some background stories.
Amazon Sues New York State Over Affiliate Related Sales Tax
Overstock Fires New York Affiliates Over New Tax Law
NY’s “Amazon Tax” Takes First Casualty: Overstock Affiliates
Overstock.com Drops New York Affiliates
Hat tip for story goes to Larry, our 5 Star Forum Administrator.
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#1 5 Star Affiliate Marketing Forums wrote on May 14, 2008 :
Other States May Copy New York’s "Amazon" Tax Law…
Several other states are reported to be closely watching New York’s new sales tax law that is being called the “Amazon” law.
The law targets online retailers who have affiliates in New York. If the o……
#2 72 Kilowatts Affiliate Marketing » Going to California? wrote on May 14, 2008 :
[...] 5 Star is reporting that California might be next to tax online shoppers via the Nexus Syndrome. [...]
#3 When Will New York Introduce A Google Tax? | Andy Beard - Niche Marketing wrote on May 14, 2008 :
[...] is also reporting that this may soon affect California as well (there are lots of affiliates in California, they like the [...]
#4 WARNING : The Affiliate State Tax Trend is NOT our Friend | Relevantly Speaking wrote on May 15, 2008 :
[...] and @techcrunch a Tweet that CA is now looking to follow NY. 5 Star Affiliate programs has links to good information on the CA tax warning [...]
#5 peter bordes wrote on May 15, 2008 :
Linda we see this as a growing issue that needs to be addressed.
http://www.relevantlyspeaking.com/2008/05/15/warning-the-affiliate-state-tax-trend-is-not-our-friend/
we have started an email to get our community pro actively working together around this issue. we have set up affiliatepetition@gmail.com to create a central gathering point to begin a working community effort
please lets all get involved!
#6 Linda Buquet wrote on May 15, 2008 :
Thanks so much Peter for taking the initiative. I think this is an extremely important issue. I was out all day taking my little 2 year old grand daughter to the hospital and am a little distracted. Give me a day to reorg and then let me know what I can do to help.
I was the 1st to blog the Overstock story and as I was writing it, I knew this was going to blow up. A few minutes later, I got the tip on the California issue and blogged this entry. I have a really bad feeling about where this is headed!
There is an issue I’ve not seen anyone talk about, that’s going to help stack the deck against us. After I get caught up I’ll try to blog about it.
#7 peter bordes wrote on May 16, 2008 :
Thank you Linda. You are right. This is an issue that can become a problem for the industry if we as an industry don’t address it. Please spread the word as we work with the IAB to assemble information about the impact this has on affiliate marketing. I will keep everyone updated thru Twitter http://twitter.com/mediatrust , http://www.RelevantlySpeaking.com and the affiliatepetition@gmail.com
It is very important that we collaborate as a community around this. The industry is fragmented and most affiliates are to small individually to have a voice. As we say at MediaTrust ” we are stronger as a collective then as individuals”. We all need to create a community voice and nip this or address it in a meaningful way. Love all the help and support from you. I believe leveraging the social media can help spread the word.
#8 New York Affiliate Marketers - It’s Time To Move To Texas wrote on May 16, 2008 :
[...] Apparently, California is considering passing a similar law. [...]
#9 Overstock Your PR Sucks - Plus Affiliates Fight NY Tax Law (OSTK) wrote on May 16, 2008 :
[...] new New York tax law, if allowed to go unchallenged, will surely be adopted by other states. I reported yesterday, California and other states are already considering it. If you are not a New York affiliate, [...]
#10 Linda Buquet wrote on May 16, 2008 :
Some new info re Overstock. TICK ME OFF!
Some new info re Amazon – yea!
Overstock Your PR Sucks – Plus Affiliates Fight NY Tax Law (OSTK)
Plus trying to help Peter rally the troops to battle this thing. (Bottom of the post.)
#11 peter bordes wrote on May 17, 2008 :
Linda thank you for the latest info. Its disturbing that Overstock.com could so easily DUMP 3,400 loyal affiliates who have helped build their brand. Why would they not take a stand with Amazon on behalf of their affiliate partners? I think one other course of action is to contact Amazon and ask how we can support them! Bad move OSTK. Now your trust factor with marketers just went to “0″ and amazons +10x
#12 New York Affiliate Marketers - It’s Time To Move To Texas | make money online,earn money online,blog,bloging,marketing,hosting,domain,adsense,affiliate,offters,cpm,cpc,cpa,cpt wrote on March 17, 2009 :
[...] Apparently, California is considering passing a similar law. [...]
#13 Mark Welch wrote on June 22, 2009 :
AB 178 is back! The language has been inserted into the budget bill in order to claim the $149.5 million in promised revenue. Amazon has responded by stating that it will NOT collect the tax, but instead if the law passes they will terminate their advertising relationships with California web publishers.
See http://forum.abestweb.com/forumdisplay.php?f=536
#14 Linda Buquet wrote on June 22, 2009 :
Mark and all I have much more recent coverage of the issue.
Here is today’s post with the current status, except the I had not added the info about Amazon’s decision yet. I speculated however that that’s what would happen. California Anti-Affiliate Advertising Tax Revived