This is going to be a big issue, especially as it involves regulation that is partially based on affiliate marketing. New York claims if any Amazon Associates (people who place Amazon ads or use referral links on their site) are residents of the state of New York, then Amazon must collect sales tax on behalf the state.
Note that the issue of whether sales tax should be collected is not at issue here, what’s at issue is if Amazon has to collect the additional sales tax, or if it is the responsibility of the consumer to report it on their state returns.
As I mentioned above, what’s interesting here is the use of Amazon’s associate program as a method of establishing Amazon’s legal presence in New York. At some point, affliate marketing is going to subject to some sort of regulation, and while that isn’t the intrinsic goal of this law, it is certainly worth noting the legal system starting to take a closer look at how affiliate marketing works.
