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On June 1, 2008 New York State imposed a new law, called the “Amazon tax”, that requires online retailers who receive more than $10,000 per year in revenue from New York affiliates to collect New York sales tax. While a number of major online retailers have challenged the law in court, it has already had a significant impact on affiliate marketers. If the law is upheld other states will enact similar laws. This paper details the impact of the law on affiliate marketers, online retailers, and affiliate networks. It provides specific short and long range recommendations to each of these types of companies.

Taxing E-Commerce Affiliates: The Potential Impact Of New York State’s “Amazon Tax”