72 Kilowatts Internet Marketing

Merchant Responsibility and the New York Tax Law

Having just listened in to the DMA call on New York’s tax law, and how it relates to all forms of affiliate marketing, I gleaned the following:

1.)  Merchants, not the networks, are responsible for determining how much revenue their New York affiliates are generating.  While it certainly would be helpful for networks to provide that info, such as Shareasale has, the ultimate responsibility will fall on the merchant, especially since a nexus could be in fact established via other means, outside of traditional affiliate marketing as we know it.

2.)  Merchants are NOT automatically exempt or amnestied simply because their affiliates provide no other promotional means outside of traditional web links, which is now commonly believed to not present a nexus scenario.  They must register, and then rebut the fact that their affiliates have established a nexus.  This is important, in that while I believe traditional affiliate marketing falls outside of this scope, it requires merchant action to prove.  As well as having the burden of proof fall on the merchant.

3.)  Merchants should in fact specifically word their contracts to preclude New York affiliates from making overtures to New York residents in any way that falls outside of web linking.  I will have a deeper most on that in a few minutes.