Overstock.com Ousts New York Based Affiliates

A new law that imposes sales tax on affiliate based sales has forced Overstock.com to decide to sever ties with their New York Based affiliates.

These affiliates referred sales to Overstock.com and they in turn pay a commission to the referring webmaster.

Jonathan Johnson, Overstock’s senior vice president for corporate affairs said:

“We believe the law is unconstitutional and won’t stand the test of the courts, but in the meantime we have been very careful to keep our footprint just in Utah. We can’t afford to have our New York affiliates up online if it subjects us to New York sales taxes.”

Overstock.com is the first major internet retailer to cut off their affiliate program because of these tax laws. Amazon said that they will not cut off their affiliates and will start collecting New York sales tax by June 1, 2008.

State officials are hoping this tax will help generate $50 million dollars a year to help with New York’s budget gap.

If you were a top Overstock referrer in New York, I’m sorry to hear that the program went belly up through no fault of your own..

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