Commission Junction Sends Letter Out to New York Affiliates on Tax Law

May 23, 2008

As some of you already know about the situation on the New York tax law soon to take effect this coming June, a few affiliate networks have chosen the path they are going to take. Overstock.com Dropped 3400 of their affiliates, and Amazon sued the State.

Commission Junction sent me this letter informing and making sure I’m aware of this law that might take place this coming June, and assuring me that that they’re efforts are on protecting their publishers as well as themselves.

The letter read…

“Dear Luis Gross,

As you may already know, the State of New York recently enacted new legislation that addresses tax registration, collection, and other time-sensitive obligations. As with all laws, this law may or may not apply to you and your business. We are actively monitoring the law and will use reasonable efforts to protect ourselves and our publishers as we deem appropriate.

The application of the law is dependent on particular business and factual circumstances, and Commission Junction is not in a position to provide legal and tax advice regarding this law. However, we encourage you to perform the appropriate due diligence as it relates to your business.

For your convenience, we have provided a link to a memo from the New York State Department of Taxation and Finance, Office of Tax Policy Analysis, Taxpayer Guidance Division that addresses the new legislation:
http://www.tax.state.ny.us/pdf/memos/sales/m08_3s.pdf

Sincerely,

Commission Junction”

With the ongoing battle between Amazon and the state of New York, many affiliate networks have been brave enough to somewhat follow in Amazon’s footsteps and try to put a stop to this inequitable law that could take effect.

What do you think the majority of affiliate programs will do? Fight the new law, or drop their New York based affiliates?