New York State versus Affiliates

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New York State taxes threaten affiliate marketers

There is a legal wrangle going on at the moment between Amazon.com and New York State that has much wider implications for anybody who earns money from affiliate marketing anywhere.

I live in Melbourne, Australia but I see this cause problems for my internet business.

So what is the problem 

and how does it affect Non New Yorkers

The problem is that NY state is trying to collect state taxes on affiliate sales made by or to people living in NY.

The merchants are being heavied by NY state to alter their systems to record the sales of NY based affiliates separately and to record sales to NY.

Amazon is fighting a court battle about it at the moment, see http://affiliate-blogs.5staraffiliateprograms.com/index.php?s=New+York+tax

However smaller operations, eg Overstock and Netshops are taking the easeir option of just dropping their affiliates based in NY. I can't really blame them.

The wider problem is that if NY gets its way, other states may follow and it makes the whole affiliate marketing industry less viable.

Amazon and Linkshare will probably survive, but there are lots of smaller operations that will just give up, or be deterd from starting a program at all.

What are YOU doing about this 

Share your campaign ideas

Let others know of your campaign ideas or links to campaigns to support a free market in affiliate marketing.

Lensmaster

Don wrote

I'm a New Yorker and have had to live under the rule of "crooked" and "mostly liberal" N.Y. politicians all my life. What a shame, they've turned this beautiful state into a really bad place to live. It's time to either fight these low life dirtbags or just move a different state.

Reply Posted June 14, 2008

bdawkins wrote...

Hi Darby! I followed you from the forum! I agree with John about adding the links, they will help! This article is good cause for a stumble! Would be great to see all marketers pull together here for the greater good for all marketers, webmasters, and affiliates! Good start!

ReplyPosted June 03, 2008

Darby wrote...

Fredm suggests mailing and emailing congressmen with your views. This can be effective only if you take the case up media and local networks. The net is the ideal medium to run viral campaigns.

Thanks for your support JohnD. I'll be adding a module or two to broaden the info available here.

ReplyPosted June 01, 2008

Lensmaster

Fredm wrote

We here in Ny need to drown our congressmen with letters and E-mails on a daily basis. This,frankly,was not given much thought as with other government mandates. There are affiliates here who make a good living and I guess the state favors sales tax over income tax. With this bill, they will have neither. Just another rush to enact something without regard to whom it hurts

Reply Posted June 01, 2008

johndilbeck wrote...

Hi Darby, you've made a good start with this lens. I think it would be even better if you added links to other sites and blogs that are already talking about this issue and fighting it. I live in North Carolina and I'm concerned by what I'm seeing New York doing to affiliate marketers who live in NY. Act on your dream! JD

ReplyPosted June 01, 2008

Oosquid wrote...

You are right. This affects every affiliate no matter where you live, it's the thin edge of a very nasty wedge. It needs to be fought, the news needs spreading.

ReplyPosted June 01, 2008

What can YOU do about it 

Just because the matter is before the courts doesn't mean to say that you should just wait. Lot's of collateral damage has already been done.

The issue will be decided in the end via a political solution. NY State will have to make some sort settlement. Whether it is favourable to small internet marketers depends on how much political pressure can be applied.

1. Get yourself informed, it affects your livelihood, no matter where you live.
2. If you live in NY state write to your local representatives about it.
3. Write to your local press about any response you get, especially if you get none. Step 2 is Useless without step 3.
4. Inform others via your lenses, blogs and websites as well as any forums you are a member of. Urge them to take action.
5. Start by publicising this lens, star rate it, favourite it, link to it, squidcast it to your groups etc.

Blog Posts from Google 

New York Steps Up Its Pursuit of Tax Delinquents to Raise Cash in Crisis
By NICHOLAS CONFESSORE Desperate for cash amid the worst fiscal crisis in years, New York State is pursuing tax debtors more aggressively than ever before, ...
Paterson Demands Spending Cuts, Tax Amnesty to Close Budget Gap
?I will not mortgage the state of New York.? Paterson's popularity is near record-low levels, with a 27 percent favorable rating and 61 percent unfavorable, ...
Sterling Bancorp Names Carolyn Joy Lee to Board of Directors
Ms. Lee has served as chair of the Tax Section of the New York State Bar Association and as chair of the State and Local Tax Committee of the Association of ...
New York's wish lists for tax amnesty
?Yes, he owes New York state money and he has taken all appropriate steps,? said Sharpton's lawyer, Michael Hardy. ?Those warrants are being satisfied ...

by Darby

Darby Higgs is a web author with an interest in wine and food. His major sites are at Vinodiversity and Albarino to Zinfandel

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