Back in November 2007, I wrote about how New York Governor Eliot Spitzer wanted all collect taxes for all Internet transactions by residents of New York.
At the time, he was widely lambasted about the issue and backed down.
But it looks like he wants to give it another go around, according to the Associated Press.
In November, Spitzer chucked a plan to collect the sales tax because he thought it was “not the right time” to increase the tax burden.
The state Department of Taxation and Finance quietly issued a memo last year that would have targeted companies that do online business in New York, but don’t have brick-and-mortar presences. The agency dropped the idea within days after news organizations began reporting on the issue.
But now it’s made its way into the state budget.
“He included it in the budget so the legislature would be able to weigh in on it,” spokesman Jeffrey Gordon said. “He determined that was a better process to go through.”
As I mentioned back then, it could have a negative impact on affiliates.
I could see this having negative ramifications on a company like Amazon – all of a sudden it’s less attractive to customers to purchase from them. So Amazon might decide to stop working with affiliates in New York if that’s what it takes.
Net result: tens of thousands (or more) of affiliates in New York with less money in their pockets.
Or maybe the affiliates could get hosting in other states (if they don’t have it already)? If their Web site doesn’t reside in New York, perhaps this would be null and void?!
Amazon.com is currently fighting the Spitzer effort. Stay tuned.