The upcoming affiliate tax in New York, starting on June 1, 2008, is leaving lots of carnage in its wake.

Dozens of affiliate programs have kicked out their New York affiliates in the past couple of weeks, according to a thread on the ABestWeb forum.

Merchants that have removed their New York affiliates include American Blinds & Wallpaper, One Step Ahead, Overstock, REI, and Ritz Interactive.

While this is lousy for the affiliates affected, it provides a good recruiting opportunity for competing affiliate programs to entice the spurned affiliates.

Keep an eye on the List of Merchants Who Have Dropped NY Affiliates thread for the latest updates.