NY Affiliate Voice has reported that there is federal action being taken to repeal the affiliate tax, which was introduced on October 1, 2008.

Last week Mr. Jim Bunning, a Senator from Kentucky introduced a bill that would eliminate affiliates from the definition of physical presence within a state. If it were to pass, this would mean that states would be prohibited from taxing out of state merchants if the only revenue sharing connection are affiliates.

While still in the very early stages, there is an encouraging sign. Having a sponsor is important, and there is a sponsor for the bill, Mr Bunning. The bill was read twice, as required, and was referred to the Committee on Commerce, Science and Transportation. The bill number is S. 3670.

This is “A bill to regulate certain State and local taxation of electronic commerce, and for other purposes”, according to OpenCongress.

See full text of bill S. 3670.

You can also track the progress at govtrack.us.

More details at http://nyaffiliatevoice.com/2008/10/federal-action-to-repeal-the-tax/ about the commission members that need to be contacted to urge them to pass it to the floor for a vote.

Also, be sure to contact your U.S. Senators to express your support of the bill.