New York Tax Q & A is up! We’ve been working with the State of New York to get clarification on the many gray areas of the May 8 TBS. We’ve been working through Jim Connolly, Staff Attorney in the Office of Counsel to the Tax Department of the State of New York. Jim and some other representatives promised they would post a Q & A regarding the many questions we’ve asked over the past month or so. Jim, just let Cecily know some of the answers have been posted.

None of the important (tough) questions I’ve been asking were answered in this round. I knew the answers to most of the Qs below from previous discussions with Jim. However there may be lots of people who still aren’t clear and this answers one of the questions about networks that I kept hearing people ask about. I’ll attempt to define what the question pertains to (in bold) then link to the Q & A for each.

What merchants are required to collect and pay NY sales Tax?
Chapter 57 of the Laws of 2008 included amendments to the Tax Law that revised the definition of vendor for New York State and local sales tax purposes. The legislation amended section 1101(b)(8) of the Tax Law to provide that sellers of…

Are NY affiliates responsible for collecting/reporting any sales tax?
Assume an Internet based retailer (seller) is presumed to be a sales tax vendor under section 1101(b)(8)(iv) of the Tax Law because the seller has entered into agreements with resident representatives, under which the resident representative…

Are there any reporting requirements for affiliate networks that work on the merchant’s behalf? What if the network has nexus in NY?
Assume the same facts as in FAQ #2422 except that, rather than directly entering into agreements with New York residents, the seller enters into an agreement with an affiliate network

Do networks need to report or substantiate the resident status of any affiliates recruited by the affiliate network?
An affiliate network service provider enters into an agreement with an online merchant. The agreement provides that the affiliate network service provider will recruit New York State resident representatives to solicit taxable sales on beh

How to register to pay tax to the State of NY
How do businesses, including sellers who are presumed to be vendors under Section 1101(b)(8)(iv) of the Tax Law, register for sales tax purposes?

Is the sale of data (like email addresses) taxable in New York?
Heads up to Lead Gen - Pay Per Lead affiliate programs
Is the sale of data or information delivered to customers in New York State, e.g., lists of e-mail addresses and customer contact information, subject to sales tax?

So again the questions in bold are my descriptions in affiliate terms - ONLY for the sake of classifying the questions and helping people get to the specific info they may need. It’s ALL subject to interpretation though, so carefully read and seek legal counsel if needed.

As I said, these aren’t answers to the important (hard) questions I wanted answers to, but it’s a start! I assume they are tackling some of the easier questions that have rather obvious answers 1st. However I’m hopeful more Q&A will be added and there is an option for you to ask your own questions for consideration as well.

Thanks go out to:
- Jim Connolly for listening and helping us get some clarification
- The State of New York for providing answers
- Cecily Lancit, our point person who is in direct contact with Jim