Forbes Article on the Affiliate Tax - WickedFire - Affiliate Marketing Forum

GoogleSearchSux · 05-30-2009, 12:46 PM

Picked up the latest issue of Forbes and what do I see...

An article about Affiliates and the tax that has been passed in NY (and soon CA).

Can't find a link online, but if you are interested:

Lee Gomes
"Affiliated With Taxes"
Forbes Special Issue (Investment Guide)

tonyfloyd · 05-30-2009, 12:56 PM

"To avoid the tax, affiliate programs have started kicking out affiliates who live in New York. Otherwise, the merchant will have to charge sales tax on those orders. Affiliates are outraged, and so are many of the merchants they promote."

so...what is one supposed to do that lives in NY??

TFLNetwork · 05-30-2009, 01:00 PM

Work on the corners i guess

majorbta · 05-30-2009, 01:20 PM

Quote:

Originally Posted by tonyfloyd

"To avoid the tax, affiliate programs have started kicking out affiliates who live in New York. Otherwise, the merchant will have to charge sales tax on those orders. Affiliates are outraged, and so are many of the merchants they promote."

so...what is one supposed to do that lives in NY??

Move. There are House and Senate Bills right now in NC to do the same thing. If they pass I will seriously be considering a move. I am not going to pay sales tax on my revenue. Imagine running big buys on 10-20% margin then having to fork over 4-8% in taxes. F that

Fatbat · 05-30-2009, 01:22 PM

If someone could post a link to the article that would be handy.

Isn't there already sales tax being paid on the goods and services being sold?

xRAVExHEAVENx · 05-30-2009, 01:23 PM

Quote:

Originally Posted by majorbta

Move. There are House and Senate Bills right now in NC to do the same thing. If they pass I will seriously be considering a move. I am not going to pay sales tax on my revenue. Imagine running big buys on 10-20% margin then having to fork over 4-8% in taxes. F that

Damn. I had no idea ot was coming to NC too.
Looks like I will be moving as well.

jenzkc · 05-30-2009, 02:29 PM

they should make it illegal for US networks to sign on foreign affiliates while they're at it.

Bombastic · 05-30-2009, 04:00 PM

So this is a sales tax only if the affiliate lives within that particular state? I live overseas, so I can assume this won't affect me even if all 50 states adopt similar laws?

sinewave · 05-30-2009, 04:06 PM

This makes no sense. State sales tax is paid by the buyer and collected by the seller. Where does the location of an affiliate's business come into play? Did I miss something?

LCI09 · 05-30-2009, 04:06 PM

They are trying to pass this tax bill in CT too. They had a vote and was something like 55 in favor and 0 against and now it is going to the next level. Looks like it is time to move.

Russ86 · 05-30-2009, 04:08 PM

This is kind of scary.. with those kind of majority votes, it won't be long before the entire nation is effected.. guess it's time to move to canada ehhh?

TheDean · 05-30-2009, 04:53 PM

Quote:

Originally Posted by majorbta

Move. There are House and Senate Bills right now in NC to do the same thing. If they pass I will seriously be considering a move. I am not going to pay sales tax on my revenue. Imagine running big buys on 10-20% margin then having to fork over 4-8% in taxes. F that

It's in committee since March right now. I moved my biz across the state line last week.

once it passes they sure give you a hell of a lot of time:

Quote:

this act becomes effective January 1, 2010, and applies to sales made on or after that date.

Roundabout · 05-30-2009, 09:53 PM

Cant you just form an LLC in like Delaware or a safe state and claim you're doing business there IF you have your hosting there and maybe a virtual office for $100 a month? There has to be a workaround.

volknet · 05-31-2009, 01:36 AM

Yea this is nuts...

We should create a pool of money and give it to the first person who legally finds a work around. Hahaha

illkity · 05-31-2009, 01:43 AM

Shit, I just moved to NC last summer...

Diego86 · 05-31-2009, 01:53 AM

Quote:

Originally Posted by Roundabout

Cant you just form an LLC in like Delaware or a safe state and claim you're doing business there IF you have your hosting there and maybe a virtual office for $100 a month? There has to be a workaround.

You'd still have to pay tax where you're a resident.. ?

NickRac · 05-31-2009, 09:13 AM

Anyone interested in pooling our money together for this:

Stranger's Cay, Bahamas, Caribbean

We can rename it to affiliate island

Russ86 · 05-31-2009, 09:49 AM

Quote:

Originally Posted by NickRac

Anyone interested in pooling our money together for this:

Stranger's Cay, Bahamas, Caribbean

We can rename it to affiliate island

hhahaha affiliate island, that would be fucking awesome.

bprimeelite · 05-31-2009, 05:07 PM

It is kind of like the amazon tax law that was put into affect in NY. They started taxing everything internet wise there and all it did was make the corporations move to Connecticut and Pennsylvania.

jdomaha · 05-31-2009, 10:47 PM

An interesting take on how you, as an affiliate marketer or online retailer, are causing your local parks to become overgrown with weeds and your friendly neighborhood book retailer to be driven out of business.

You're all a bunch of bastards.

Shawn Collins · 06-01-2009, 10:56 AM

Here's the Forbes article - Taxing A Virtual Presence - Forbes.com

BlueYonder · 06-01-2009, 11:03 AM

Quote:

Originally Posted by Diego86

You'd still have to pay tax where you're a resident.. ?

This doesn't make any sense, because the product doesn't necessarily ship or get sent to an address in the same state. I'd like to see somebody who has visited an accountant or tax attorney chime in. We're debating in a vacuum I think.

05-30-2009, 12:46 PM	#1 (permalink)
GoogleSearchSux Senior Member Join Date: Aug 2008 Location: SF Posts: 408 iTrader: 0 / 0%	Forbes Article on the Affiliate Tax Picked up the latest issue of Forbes and what do I see... An article about Affiliates and the tax that has been passed in NY (and soon CA). Can't find a link online, but if you are interested: Lee Gomes "Affiliated With Taxes" Forbes Special Issue (Investment Guide) __________________ Null

05-30-2009, 01:00 PM	#3 (permalink)
TFLNetwork Enter Custom Title Join Date: Jul 2008 Location: Philadelphia Posts: 1,182 iTrader: 0 / 0%	Work on the corners i guess __________________ Twit

05-30-2009, 01:22 PM	#5 (permalink)
Fatbat Advertise Here Join Date: May 2008 Location: Costa del Sol, Spain Posts: 2,706 iTrader: 2 / 100%	If someone could post a link to the article that would be handy. Isn't there already sales tax being paid on the goods and services being sold? __________________ BRAD SHAW - GRAPHIC DESIGN [ WEB - PRINT - IDENTITY ] >>>

05-31-2009, 01:36 AM	#14 (permalink)
volknet Jonathan Volk Join Date: Aug 2007 Posts: 624 iTrader: 0 / 0%	Yea this is nuts... We should create a pool of money and give it to the first person who legally finds a work around. Hahaha __________________

05-31-2009, 01:43 AM	#15 (permalink)
illkity n00b13 Join Date: Mar 2007 Location: Oz Posts: 373 iTrader: 3 / 100%	Shit, I just moved to NC last summer... __________________

05-30-2009, 12:56 PM	#2 (permalink)
tonyfloyd Wordpress Guru Join Date: Jul 2008 Location: NY Posts: 132 iTrader: 0 / 0%	"To avoid the tax, affiliate programs have started kicking out affiliates who live in New York. Otherwise, the merchant will have to charge sales tax on those orders. Affiliates are outraged, and so are many of the merchants they promote." so...what is one supposed to do that lives in NY??

05-30-2009, 02:29 PM	#7 (permalink)
jenzkc Senior Member Join Date: Jul 2007 Posts: 1,098 iTrader: 6 / 100%	they should make it illegal for US networks to sign on foreign affiliates while they're at it.

05-30-2009, 04:00 PM	#8 (permalink)
Bombastic Microniche Mayhem Join Date: May 2009 Location: Osaka Posts: 931 iTrader: 8 / 100%	So this is a sales tax only if the affiliate lives within that particular state? I live overseas, so I can assume this won't affect me even if all 50 states adopt similar laws?

05-30-2009, 04:06 PM	#9 (permalink)
sinewave Senior Member Join Date: Aug 2007 Posts: 192 iTrader: 0 / 0%	This makes no sense. State sales tax is paid by the buyer and collected by the seller. Where does the location of an affiliate's business come into play? Did I miss something?

05-30-2009, 04:06 PM	#10 (permalink)
LCI09 Member Join Date: Apr 2009 Posts: 77 iTrader: 0 / 0%	They are trying to pass this tax bill in CT too. They had a vote and was something like 55 in favor and 0 against and now it is going to the next level. Looks like it is time to move.

05-30-2009, 04:08 PM	#11 (permalink)
Russ86 Senior Member Join Date: May 2009 Posts: 205 iTrader: 9 / 100%	This is kind of scary.. with those kind of majority votes, it won't be long before the entire nation is effected.. guess it's time to move to canada ehhh?

05-30-2009, 09:53 PM	#13 (permalink)
Roundabout No Kill I. Join Date: Apr 2009 Location: Casino Posts: 3,166 iTrader: 0 / 0%	Cant you just form an LLC in like Delaware or a safe state and claim you're doing business there IF you have your hosting there and maybe a virtual office for $100 a month? There has to be a workaround.

05-31-2009, 05:07 PM	#19 (permalink)
bprimeelite Senior Member Join Date: May 2009 Posts: 776 iTrader: 2 / 100%	It is kind of like the amazon tax law that was put into affect in NY. They started taxing everything internet wise there and all it did was make the corporations move to Connecticut and Pennsylvania.

05-31-2009, 10:47 PM	#20 (permalink)
jdomaha Senior Member Join Date: Oct 2007 Location: Omaha Posts: 698 iTrader: 8 / 100%	An interesting take on how you, as an affiliate marketer or online retailer, are causing your local parks to become overgrown with weeds and your friendly neighborhood book retailer to be driven out of business. You're all a bunch of bastards. __________________ Omaha Landscaping - Now offering lawn care!

06-01-2009, 10:56 AM	#21 (permalink)
Shawn Collins Affiliate Summit guy Join Date: Jul 2006 Location: Berkeley Heights, NJ Posts: 303 iTrader: 0 / 0%	Here's the Forbes article - Taxing A Virtual Presence - Forbes.com __________________ Shawn Collins Next Affiliate Summit - January 9-11, 2011 at Wynn Las Vegas

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