The US Supreme Court announced today that they have officially denied the petitions filed by Amazon and Overstock, to appeal New York’s affiliate nexus tax law.
We are terribly disappointed in this outcome. There are over 80,000 online affiliate marketers in the US who have had their incomes devastated by various states’ attempts to regulate interstate commerce. Aside from the different rulings from Illinois and New York, the laws don’t work. They don’t compel e-retailers to collect sales tax. The states who have passed these laws have actually lost income tax revenue from the small businesses forced to move out-of-state or down-size.
These state laws need to be shut down, and that’s what we hoped from a Supreme Court ruling. Barring that, there is still a solution before Congress, the Marketplace Fairness Act, which passed in the Senate. It’s the only viable solution, to require all retailers to collect sales tax for all states. Maybe the House will show more interest now that there’s not a Supreme Court ruling in the wings.
We’ll be sharing more insights with PMA members in the coming days, via the PMA’s Industry Report Newsletter.