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Overstock Sues New York Over Affiliate Tax

May 31, 2008 by Shawn Collins

I just saw on a Tweet from Linda Buquet that Overstock has filed a lawsuit to fight the New York affiliate tax.

Tweet from Linda Buquet

Overstock.com, Inc. (Nasdaq: OSTK) announced today that it has filed a lawsuit challenging New York’s new tax law that requires internet retailers to collect and pay to the New York state tax on their New York sales despite the fact that the retailer has no physical presence or nexus in New York.

The controversial new law attempts to redefine the relationship that internet retailers have with their New York-based advertising affiliates by requiring that when those affiliates solicit customers, the internet retailers collect and pay sales and use tax from all their New York customers.

Overstock.com, which is based only in Utah, has no operations in New York, and sells exclusively through the internet, views the new law

It’s great to see another online retail powerhouse fighting the state of New York over the affiliate tax.

Earlier this week, Overstock chairman and CEO Patrick Byrne shared his perspective in my blog comments on this issue.

Go Patrick… go Overstock… fight the good fight!

Linda has some more information on her 5 Star Affiliate Programs Blog.

Read the Overstock press release for more details.

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