From their forum:
As you may know, the State of New York recently enacted new legislation that addresses tax registration, collection and remittance, which challenges the CafePress affiliate business model.
Due to mounting uncertainly over these new laws we will no longer be able to support affiliates residing in the State of New York, effective July 1, 2008.
While CafePress has no tax nexus in any states other than California, Nevada and Kentucky we feel it wise to discontinue our affiliate business in New York State at this time.
Regrettably, our hand was forced into making this difficult business decision, and we openly acknowledge the loss of income this means for our New York affiliate partners. Should circumstances around this law change we will eagerly reconsider this decision.
Effective July 1, 2008 CafePress affiliate agreements with all New York residents will be terminated.
Please let me know if you have any questions.
Sincerely,
Steve Root
Affiliate Manager
CafePress
sroot@cafepress.com
650-655-3055