This is bunk, I liked Spitzer up till this point...

http://www.nysun.com/article/66382

"At issue is the "affiliate program" used by many e-retailers. Web site
operators can provide a link to an e-retailer in return for a commission on
any sale resulting from customers using the link. While the affiliate
program may consist of little more than a non-descript advertisement on the
computer screen, the tax consequences may be huge: New York state says it is
the equivalent of having an instate salesperson."

While I understand why Governor Spitzer would like to gain additional
revenue from Internet sales, the loop hole they are quoting is putting
affiliate systems as a whole at risk. This is an important part of online
retail and revenue for many who live in NY paying taxes on Affiliate
Generated revenue as it is. If the Governor puts this tax into effect, many
online retailers will stop offering affiliate memberships to people who live
in NY and these individuals will be forced to look for employment
opportunities else where.


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