More Changes in New York State Taxes: More Problems for Online Retailers

New York state strikes again and online retailers are showing some interesting responses. Effective June 1, New York state changed the laws concerning tax collection. This change is affecting affiliates more than anything. Affiliates are people who operate websites where they link to an online retailer and then the website owner gets paid a commission. The new laws require merchants paying affiliates to collect NY state taxes from residents of New York. These merchants are not set up for taxing affiliates only buyers. The big guys are working on solutions, but smaller merchants are having a hard time.

Many merchants have chosen to just remove New York state residents while giant Amazon.com has chosen (for the time being) leave the affiliates on and pursue it in the court systems.

NYAffiliates.com is reporting a list of merchant who have removed affiliate programs from NY state residents. You can see the list as of July 2nd on Page 3.

If Amazon's attempts in court fail, many states will follow suit and implement similar laws. There are already 18 states either on the bandwagon or making movements toward the same goals. The problem is that none of the states are attempting to get something standardized set up and smaller retailers cannot possibly keep up with all of the different tax rates.

Anyone reading this, here is the next million dollar idea...a plug and play sales tax calculator fitting into affiliate commissions. I have a ton of these brilliant ideas. Just call me sometime! If you are already using this technology, please contact us so we can refer questions to you.

The following are a list of merchants who have removed New York affiliates as of July 2. Check http://www.NYAffiliates.com for updates to the list.

Acorn Media (Linkshare)
Amerimark (Linkshare)
Baby Universe (Linkshare)
Backcountry.com (CJ, Avantlink)
Binoculars.com (CJ)
Bodybuilding.com (CJ)
Brecks (Performics)
CafePress (CJ)
CCVideo (Linkshare)
Celebrate Express (Shareasale)
Checks In The Mail (CJ)
Checks Unlimited (Shareasale)
Collectors' Choice Music (Affiliate Future)
Compact Appliance (CJ)
CSN Stores (Shareasale)
Deep Discount (Affiliate Future)
DVD Planet (CJ)
Eastwood Company (CJ)
eToys (Linkshare)
Fingerhut (Linkshare)
FirstStreet
Footsmart (CJ, Performics)
Gaiam.com (Linkshare)
Garden's Alive (Performics)
Geeks.com (CJ)
Gurneys (Performics)
Henry Fields (Performics)
Jewelry Television (CJ)
J&P Cycles (CJ)
Justflowers (CJ)
Karmaloop (Linkshare)
KB Toys (Linkshare)
LampsPlus (Linkshare)
Leaps And Bounds (Performics)
LinenSource (Linkshare)
Luggage.com (Shareasale)
Michigan Bulb (Performics)
Musicians Friend (CJ)
MyTwinn (Linkshare)
NetShops
Northern Tool (CJ)
One Step Ahead (Performics)
OnlineShoes.com (Linkshare)
Oriental Trading (Linkshare)
Overstock (Linkshare)
Palo Alto Software (Independent)
Red Envelope (Performics)
ReStock It (CJ, Shareasale)
Ritz Camera (CJ)
ShopNBC (Linkshare)
ShoppersChoice (CJ)
Silhouettes (CJ)
Spilsbury (Affiliate Future)
Spring Hill (Performics)
Thompson Cigars (Linkshare)
Tirerack (CJ)
uBid.com (CJ)