Overstock Dumps NY Affiliates Over Sales Tax

    May 15, 2008
    WebProNews Staff

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