Comments on: Linkshare/DMA – Join the New York Tax Conference Call PLUS DMA’s Analysis of the Law

By: Merchants - URGENT Re New York Affiliate Tax Law - 5 Star Affiliate Marketing Blogs

Thu, 22 May 2008 18:25:43 +0000

[...] is extremely urgent information for all merchants – please spread the word! I just got off the Linkshare/DMA New York Tax conference call with DMA Tax Counsel George Isaacson. George stressed upfront that this was not strategy call – [...]

By: Linda Buquet

Linda Buquet — Wed, 21 May 2008 16:48:12 +0000

Thanks Jason, I wondered that too. But they covered their bases on that one on page 3, example 3. http://www.tax.state.ny.us/pdf/memos/sales/m08_3s.pdf

“T sells a variety of small tools nationwide, over the Internet. T’s home office is in Arkansas, where its warehouse and administrative offices are located.

T enters into a contract with S, a service provider. Under the contract, S enters into agreements with New York State residents on behalf of T, whereby the New York State residents agree to refer potential customers to T’s Web site in order to purchase T’s products by placing T’s product links on their Web sites.

Under the contract, S tracks sales of T’s products as a result of the referrals from the New York State residents’ Web sites. S distributes commissions to the New York State resident representatives based on these sales from an account maintained by S on behalf of T for this purpose.

From March 1, 2007, to February 29, 2008 (i.e., the preceding four quarterly sales tax periods), T’s gross receipts from sales made under its agreements with S and the New York State residents as described above totaled $68,000. Therefore, T is presumed to be soliciting sales in New York State through the use of independent contractors or other representatives and required to be registered as a sales tax vendor, collect New York State and local sales taxes, and file the required sales tax returns.”

By: Jason Forthofer

Jason Forthofer — Wed, 21 May 2008 16:17:39 +0000

Another angle on this law. It’s actually the network that pays the affiliate (in most cases). It’s the network, not the merchant that sends the W-2. Can this new law only apply to the affiliate networks based in New York, like Linkshare?

By: Linda Buquet

Linda Buquet — Wed, 21 May 2008 04:11:55 +0000

ODD? Both docs are missing from the Linkshare Page they are sending people to.

http://www.linkshare.com/advertisers/ny_state_tax/

Both PDFs were there earlier today several times when I checked.

NEVERMIND as of Wed AM they are back.

By: Linda Buquet

Linda Buquet — Tue, 20 May 2008 20:20:14 +0000

Added this update to blog, but wanted to be sure everyone sees it.

UPDATE: 5/20 12PM Another major Internet Marketing Organization had a meeting about this today. Waiting to hear results. Will blog it or add to an existing blog, depending on what I hear and where the info best fits.

By: Commission Junction / Direct Marketing Association response on NY Sales Tax : Vastplanet Blog - Internet Marketing

Tue, 20 May 2008 19:55:03 +0000

[...] Linkshare/DMA – Join the New York Tax Conference Call PLUS DMA’s Analysis of the Law by Linda Buquet of 5Star Affilaite [...]

By: Linda Buquet

Linda Buquet — Tue, 20 May 2008 19:30:08 +0000

I’m registered for the conference call. A few of us should try to put our heads together to come up with the 1 or 2 most important questions. Q&A time may be limited and who knows how many people will have questions. Instead of several of us scrambling to get a Q in, that may not be the most important, we should nominate a spokesperson to ask the Qs so we are organized.

We need someone with some industry recognition who is succinct, not emotional and can just stick to the facts. I nominate Shawn!