Posts Tagged ‘New York tax law’

BROOMFIELD, Colo. – (Aug. 10, 2009) – ClickBank officials will continue to work with affiliate marketers in states that are enacting new laws to tax the marketers’ sales, while Amazon and Overstock.com, among others, have been moving swiftly to halt its business relationships with affiliate marketers in various states because of the new tax implications.

In late June, Amazon terminated its marketing affiliate program in North Carolina after a new law took effect that will tax affiliate sales, and on July 1, Overstock.com notified affiliates in Hawaii, North Carolina and Rhode Island that it would immediately cease doing business with them because of similar new tax laws.

But ClickBank, a major online retailer, says it has no intention of terminating relationships with affiliates in certain locations or discontinuing its longstanding policy of collecting and remitting taxes to the appropriate tax authorities in various domestic and international jurisdictions.

“We will continue to honor sales agreements with affiliates in the U.S. and abroad, despite new taxes that are being levied against them for sales and marketing efforts,” said Dush Ramachandran, vice president of sales, marketing and business development for ClickBank.

“One of the benefits of being a ClickBank affiliate is that you can operate wherever you live,” said Ramachandran. “We don’t want to place limits on that now. Our affiliates deserve the opportunity to earn income regardless of where they live, and ClickBank will continue to support them in their efforts to do so.”

New state tax laws aim to collect sales tax revenues from affiliates whose marketing activities lead to ecommerce sales. The key issue is whether the affiliates have a physical presence in a state that taxes ecommerce activities. The state of New York was the first to enact such tax laws, and more states are following suit.

Posted by: Bob King, CEO

The blogosphere and affiliate marketers have been abuzz about New York’s new tax law that requires online retailers to collect and remit sales taxes on purchases by New York residents. The curveball New York threw in there was that the presence of affiliates in the state was a basis to establish nexus for tax purposes.

This got a lot more attention last week when Overstock.com summarily dropped all of its New York-based affiliates so it would not have to collect and remit taxes to that state.

While we are disappointed by New York’s decision, there is no way we are going to cut off our affiliates, our highly-valued business partners, because of an action by lawmakers.

The commitment we have to our New York affiliates goes for all ClickBank users, affiliates and product publishers alike. We do everything we can to ensure that you are successful so that means we adapt to new circumstances ….including changes in tax law. That’s just the way we do things around here.

So, New York affiliates, publishers, and consumers will have the systems they need by June 1. We’ll be sending out a technical announcement in the next few days on how it all works. And, rest assured, when changes in the marketplace impact affiliate marketers or product publishers, ClickBank will be there with solutions.