Sales tax laws in general (keep in mind that I'm no lawyer) say that if a company has a presence in a state, merchants have to collect sales tax from residents of that state. New York is apparently going a step further. If a merchant has an AFFILIATE in a state, sales tax must be collected. While all the interpretation is perhaps up in the air, some aff networks are taking action.
ShareASale will help merchants oust New York affiliates if requested to do so. Hats off to Brian Littleton at SAS for doing it in a way that keeps information private. See Brian's post at abestweb forum
Also heard through the grapevine is that Overstock.com is removing all New York affiliates from their affiliate program to avoid having online purchases by New York residents subject to a sales tax.
We will probably see this more and more as states look to fill revenue shortfalls, especially in these financially lean times.
Russell