Overstock Dumps NY Affiliates Over Sales Tax

By: WebProNews Staff - May 15, 2008

While Amazon plans to fight New York’s new law that requires it to collect sales tax on online purchases, Overstock chose to kick out its New York affiliates to avoid that collection duty.

Overstock dropped Business Know-How a note, telling the site it had been booted from the Overstock Affiliate Program. As a New York-based site, Overstock faced the prospect of collecting sales tax from business driven through affiliates like Business Know-How.

“New York: You’re losing far more than you’ll gain with foolish laws like this one,” Business Know-How said, citing not only the sales tax the state won’t collect, but the income tax they won’t get either based on those affiliate commissions.

The Bits Blog noted a comment from Overstock about their decision to back down rather than fight for their New York affiliates:

“We believe the law is unconstitutional and won

WebProNews Staff

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  • Guest


    This sales tax thing will expand beyond the affiliates with time and invade all on line business conducted in NY. Then the rest of the states will follow suite and try to initiate the same tax because of the perceived revenues resulting in a catastrophic collapse of online merchants. The federals not wanting to be left out will then slam us with a notional sales tax and the nightmare will be complete. Perhaps a well funded merchant like Amazon could afford to purchase, install and maintain software designed to keep[ track of all of the various taxes but the average merchant doing business online would simply have to close the virtual door and go back to mowing lawns for a living.

    When will the various governments of our country finally get a clue and figure out why the American public struggles to make ends meet and decide to operate within their own means and stop asking for more and more? This is getting well out of hand and what the governments need to learn is that the people run the country with daily commerce and need to retain enough of their income in order to survive and maintain business. Government never has and never can, no matter how much money it collects, influence commerce and make the citizen more profitable. Government can only impede commerce.

    • Guest

      The american people are sheep.  They will do whatever they are told and will believe whatever they are told.



      2 planes knock down 3 buildings and amazingly it also happened in NY.  It’s a miracle!!

      • Guest

        It is amazing that the plan to knock down those buildings was conceived in a tent full of sheep shaggers.

  • http://www.SanDiegoPreviews.com Roberta Murphy

    –and shame on the State of New York. What a state it is in….

  • Guest

    If New york wants to push business’s out of the area, they are doing a really good job of it. I’ve watched several companies close due to NYS’s obsession of overtaxing Our local small business’s like the Sheriff of Nottingham. It’s sad and they cannot figure out why Business’s are leaving.

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  • http://www.50statesclassifieds.com Jessica

    We are already overtaxed, when will the greed of these politicians ever end?