New York Affiliate-Based Sales Tax Law - IMPORTANT!

[Linda Buquet]

Complete Coverage of the New York Affiliate Tax Issues Here!

Another post from Brian at Shareasale offering some very important advice to merchants.

This tax issue is going to go one of two ways. He explains the 2 possible outcomes and says either way this law goes, you will put yourself at a disadvantage if you decide to get rid of New York affiliates.

Merchants - Don’t eliminate your NY Affiliates.

Merchants please read this before making any decisions about this issue.
Brian makes some really good points.

[Linda Buquet]

Several more important issues came up yesterday.

Important New Info for Merchants re New York Affiliate Tax Law

Also see this!

Heather Paulson has in-depth info from a conference call with New York tax officials. Thanks Heather for sharing all the details with us!
From Revenews:

Interview with Members of the New York State Tax Department | ReveNews

[Linda Buquet]

Complete Coverage of the New York Affiliate Tax Issues Here!

REALLY IMPORTANT!!!

Linkshare and the DMA will be having a conference call Thursday. Get on the call if you can. Here is the DMAs legal analysis of the law so far.

Linkshare/DMA - Join the New York Tax Conference Call PLUS DMA’s Analysis of the Law

If you are active in this fight you need to get on the conference call Thursday if possible.

[Linda Buquet]

Evidently Clickbank is going to start charging NY residents tax. Some affiliates are starting to get this:

This email confirms that ACTION IS REQUIRED to continue receiving your product.

Our records show that the payment information we have on file requires updating your county of residence to accommodate collection of sales tax as required by the state of New York.

To update your county please follow the steps below:

1. Go to the URL:…

2. Enter your order number and email address

3. Update your billing information and click "Update Information."

Somewhere I got the feeling info products were not taxable.
Maybe I'm wrong???

[Linda Buquet]

EXTREMELY IMPORTANT FOR MERCHANTS!!!

Merchants - URGENT Re New York Affiliate Tax Law

I'm rushing off for a meeting with the largest Internet attorney to see if he can help us with this issue. Check the 5 Star blog for more important info I have, as soon as I can find the time to blog it.

SPREAD THE word and pass merchants the link to the blog post above.
Super important!

Complete Coverage of the New York Affiliate Tax Issues Here!

[Linda Buquet]

I've made TONS of edits to that post as new issues and different legal viewpoints surface.

I had a REALLY long talk with the Internet attorney so here’s an update.

UPDATE 1:30 PM: INTERPRETATION OF THE TSB as it Relates to Affiliate Links: Just had a very long detailed conversation with John Dozier Esq., Managing Partner of Dozier Internet Law. John is one of the leading Internet attorneys out there, understands affiliate marketing and has handled numerous affiliate marketing related cases on a variety of issues. We went over the TSB in detail and the way he reads it, is not as clear cut as it was when we discussed it on the DMA call.

If you carefully and critically read every place in the TSB doc that mentions advertising or placing links, some of the information even sounds contradictory. In some places it sounds as if they are saying regular advertising links are not a problem, but affiliate links are because compensation is based on a pay per sale model. So many potentially problematic issues came up and everything is all based on interpretation because it's not clearly written. The bottom line too is, this TSB document is not the law and is not binding. It's only an attempt to clarify and explain the law and is subject to change.

SO ALL THAT SAID: If I were a merchant I would not try to figure it out,
I would contact John right away to get some help. I would maybe also go ahead and do the TOS changes to be on the safe side. BUT REALIZE that simply changing your TOS in and of itself will not protect you and may not be grounds to rebut. Based on the way NY interprets and enforces the law, just having pay per sale affiliate links even with no other solicitation still could constitute nexus.

Based on everything that happened on those 2 calls and the fact that there are a ton of other issues people haven't even thought about yet... I'm going to say this is WAY more complicated than people realize and there are a bunch of loopholes and gotchas. I wish I had recorded and was able to share both calls with you, so you could hear 1st hand the viewpoints from 2 very knowledgeable lawyers.

I will continue to report on news as I find it, but for me to try and explain complicated phone calls with attorneys and translate interpretations of this law this when I'm not not a lawyer, is just really not a good idea. You just need to get a really good lawyer that understands affiliate marketing, Internet marketing and tax law!

Complete Coverage of the New York Affiliate Tax Issues Here!

[Linda Buquet]

Dozier Internet Law: 10 Tips for New York Affiliate Tax Problems

Yesterday, I took it on myself to contact a leading Internet attorney - John Dozier Esq., Managing Partner of Dozier Internet Law. As I searched for an attorney to reach out to for industry assistance on this New York Tax law, one of the reasons I selected John is his in-depth background dealing with a variety of lawsuits and cases in the affiliate marketing space. I wanted someone that understood our industry.

ANOTHER MUST READ FOR MERCHANTS!
Top Ten Tips To Manage New York Sales Tax

PLUS>>>

FURTHER ACTION: A group industry leaders and I are in direct communication with Jim Connolly, Staff Attorney in the Office of Counsel to the Tax Department of the State of New York. We are pulling together a list of important questions in order to get clarification on numerous issues. Jim has agree to answer the questions publicly. There are many gray areas and much of the language is unclear, so this should help everyone a lot. If you have questions please post them HERE and we'll include the most relevant ones in the list that goes to Mr. Connolly. Additionally, there is a chance John Dozier could possibly weigh in on some of the questions you post here at 5 Star.

[Linda Buquet]

Lots more important info from yesterday's blog. Sorry didn't
have the time to add it here, but if you are affected by this issue you need to be reading my blog because it has all the details and is continuously updated not only by me but through comments from others in the industry.

Consumer Backlash Over New York Affiliate Tax Could Hurt Us
Be sure to read the comments from the link link I reference.

[Linda Buquet]

I've been super busy on the NY issue and have not had time to totally keep this thread up to date. AGAIN if you want the latest keep your eye on the blog and new comments in the blog.

In a nutshell LOTS of merchants have terminated NY affiliates.
MANY just sent affiliates notice yesterday the 30Th. saying they will
terminated the 31st. NO warning! Affiliates are scrambling to pull links
and replace merchants.

Quite a few are ammending their TOS thinking it will protect them.
I now think that the DMA advice may be wrong and merchants still do not understand the TBS. Understandable since it's so poorly written that even attorneys have differing viewpoints on what it means.

BUT SOME VERY BIG COMPANIES have put out public notice that they are keeping affiliates and avoiding the law by changing their TOS. I would not be surprised at all if NY went after one of the these companies for back taxes to make a statement and scare other merchants into reporting.

HUGE NEWS!
REALLY important update (I know I keep saying that but it is!)
Overstock Files Lawsuit w/ Supreme Court to Fight New York Tax Law

As I said in my blog, for a variety of reasons this could help us more than the AZ suit. YAY OVERSTOCK.
I gave Overstock a really hard time over dropping affiliates, this move helps a little to make up for it.

[Linda Buquet]

I'll be on a panel discussion tomorrow on Webmaster Radio,
talking about the New York Tax Law problems. Here's more info.

http://affiliate-marketing-forums.5s...html#post34466