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Saturday, May 24, 2008

NY Affiliates getting the boot.

NY residents who are promoting merchants as affiliates have been getting termination notices over the past week. This is based on a recent NY interpretation of a 1992 supreme court decision which held that a retailer must have a "physical presence" within the state in order to be responsible for collecting sales taxes.

Under the new regulations, if a retailer brings in at least $10,000 of annual revenue from New York based affiliates, it is determined to have a 'nexus' in NY & is responsible for collecting the sales taxes.

Despite a suit by amazon.com challenging the decision,this has led to a number of well-known affiliate programs dumping affiliates such as Overstock, Ritz Interactive, REI, and almost 2 dozen other merchants.

Read More:
http://www.internetnews.com/government/article.php/3744476/Amazon+Sues+New+York+Over+Internet+Tax.htm
http://www.webmasterworld.com/ecommerce/3654714.htm
http://forum.abestweb.com/showthread.php?t=105393&page=1&pp=25

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