The state of New York recently adopted a law that requires online retailers to collect taxes for items sold in New York if they have affiliates based in the state. That might sound like a reasonable request if New York shopping malls were littered with Amazon and Overstock.com kiosks. But the affiliates the law refers to are web publishers and bloggers in NY who happen to post links to stores like Amazon and Overstock in exchange for a small commission.
Needless to say, some folks aren't too happy with the ruling, and Amazon has already sued NY. Overstock.com is apparently taking a different approach. The company has begun sending out letters to affiliates in New York, letting them know that the company will, at least temporarily, be ending its relationships with NY affiliates.
In other words, New York doesn't get to collect any taxes from Overstock.com, and the state has probably just ticked off a whole lot of New Yorkers who had affiliate relationships with the company.
Thanks Scott!
