Bad news on the New York Affiliate Sales Tax front!
According to a breaking story by
Business Week, "A state Supreme Court justice in Manhattan is dismissing the suit challenging the constitutionality of the legislation, saying Amazon had no basis for legal action."
A PC World story surmises what we've all been worried about. If NY gets away with this convoluted sales tax loophole they are using affiliates to create - then other states will surely follow.
Coming Soon: More Online Taxes? "What does this all mean? It means the U.S. government wants to do away with measures that exempt online retailers from paying what it feels is owed money. Now that Amazon and Overstock's objections have been thrown out, the battle against New York's new taxation efforts becomes difficult--if not impossible. Buying goods online is likely to become more expensive."
There is much speculation about the fact that Overstock and Amazon could and probably will appeal this dismissal. So this may not be over yet and the good thing is, it could possibly escalate to the Supreme Court which would make this a national issue.
According to the
Channel Register: "It is fairly certain that both Amazon and Overstock will appeal these rulings. If they decide to, they will take up their cause with the New York State Supreme Court Appellate Division, and then it would go up higher to the New York State Court of Appeals. Because it is a constitutional issue, it could in theory get to the U.S. Supreme Court."
Fingers crossed that Amazon and Overstock both appeal and take this all the way to the top! If you are at Summit try to find people from both companies and ask them to push it!
If you are new to the New York Tax issue here is a TON of background info.
New York Affiliate Tax Comprehensive Coverage
Bad News re NY Affiliate Tax - Judge Throws out Amazon, Overstock Cases
Linear Mode
