Dear AssemblyPerson

I am an Internet Affiliate marketer in New York. The New York Tax Law § 1101(b)(8)(vi)
that started on June 1, 2008, which the New York State legislator passed and was signed into law by new governor David Paterson, is putting me and my fellow New York Affiliate marketers out of business.

Everyday I receive dozens of e-mails from out-of state online Internet retailers telling me that I have been removed from their affiliate program and I should remove all links to them because I live in New York State.

The new tax law gives these out-of state online Internet retailers only two choices. Sue New York State to have the law declared unconstitutional or terminated their relationships with their New York-based affiliates, affiliates who live in New York State. This law does not stop a New York State consumer from clicking on the link of an out-of-state affiliate and purchasing an item from an out-of state retailer. The out-of-state affiliate will not pay New York State income tax on this commission .

This new tax law will not raise revenue for the state. Internet Affiliate marketers in New York cannot pay New York State income tax on commissions they cannot earn because of this law.
This law will make out-of-state affiliates very rich since they no longer have to compete against
New York State affiliates. New York State will be losing millions of dollars in income tax revenue that New York State affiliates have paid in the past.

I understand in the hysteria that followed the resignation of the previous governor and the need to pass a budget, this poorly thought out legislation was passed. Now that you have had time to realize that the only people being punished by this tax law are New Yorkers, who vote for their representatives.

I am asking that you introduce or vote for legislation that will correct this burden New York affiliates are suffering. I ask you to urge the Governor to suspend the enforcement of this law until corrective legislation can be passed.

This legislation was the brainchild of the demented former governor whose criminal and scandalous behavior forced his resignation. Unfortunately this legislation didn’t die with him.
It is now necessary to repeal it.

New York State unlike the federal government may not print money. The failure to correct this unfortunate legislation will result in a great lose of revenue and will then require even greater cuts to government programs.