New Yorkers Face “Taxing” Problem at Amazon

April 15th, 2008

According to an article in the NY Times, New York State representatives are considering levying a new “Amazon Tax” on residents who shop online. This tax was a little addition tacked on to the new state budget. If approved, New Yorkers would have to pay sales tax on purchases made online. The State figures this could add as much as 50 Million in new tax revenues from online merchants like Amazon.

State officials claim that because Amazon has affiliates who earn revenue in the state, they are in fact doing “business in the state,” therefore they would be subject to state sales taxes.

If passed this could be a precedent for other states around the country to charge sales tax for online sales. Moreover, what are the repercussions for the affiliate marketing industry? Could merchants have another good reason for not using affiliate marketers to sell their goods?

Entry Filed under: General