As a direct result of our meeting in Albany and having retained legal counsel, we have the necessary documents that will permit merchants to resume partnership with NY affiliates. The main stumbling blocks over the last two months was a lack of understanding of the requirements to comply with the tax law and the lacking of the necessary written agreements.
We have been advised by our New York State Tax attorney that there is a simple two step process that merchants and affiliates need to take to be in compliance.
There are two documents to download that include steps merchants need to take and more importantly, sample agreements. The links to these documents are at end of this post.
This post is only an overview, please download both documents for additional details and explanations. Use all information to assist you. It is not meant to replace the advice of your own lawyer or accountant but to ease the process of implementing the solution.
Step one is to add terms to affiliate agreement.Out of state merchants need to add a contractual condition to their affiliate program terms that prohibits New York affiliates from solicitation activities.
We now have the paragraphs that need to be added to terms.
Step two is Proof of compliance.This is accomplished by requiring affiliates to submit on a yearly basis, a signed certification that they, the affiliate, have in the previous year complied with the terms of the agreement. This agreement is due on or before May 31 of every year and must be retained by the merchant.
We now have a sample agreement.
Here is the link to our version of letter outlining steps to take and all the sample agreements. Letter to merchants outlining Merchant’s Two Steps to Comply with NY Internet Tax Law.
We are also providing the lawyers’ version of letter to merchants. This detailed versions offers some background information and additional details that some CFO’s, CEO’s and others might prefer. Detailed Information on How to Comply with Tax Law.
Download both documents. Read through both documents and understand them.
This is the solution and we have done the necessary work to make it easy to implement.
Several people have been involved with this and it is our hope that you find it helpful. We worked together, one goal and no politics. We had no motivation aside from finding a way to keep our businesses.
I and thousands of other New York Affiliates look forward to resuming our partnerships with merchants.

6 responses so far ↓
1 5 Star Affiliate Marketing Blogs // Aug 7, 2008 at 1:00 pm
The New York Tax Solution Complete with Documentation…
Melanie Seery just blogged about the solution to the New York tax problem - 2 easy steps and sample documents. ATTENTION merchants affected by the New York Tax law ESPECIALLY if you severed your relationship with New York affiliates. Affiliates pass Me…
2 Affiliate Marketing: The Shirt Off My Back | Affiliate Marketing | Affiliate Networks // Aug 11, 2008 at 2:26 am
[...] Thanks to Melanie Seery of NYAffiliateVoice, I was able to get the last minute updates and the Two Steps to Comply with the New York Tax Law post I was able to give people some great information. After that was a four hour meeting for [...]
3 Summary Of NY Tax Session at Affiliate Summit East // Aug 14, 2008 at 11:56 am
[...] WordPress.org ← Two Steps to Comply with Tax Law [...]
4 New York Tax Law Session at Affiliate Summit East - 5 Star Affiliate Marketing Blogs // Aug 14, 2008 at 12:42 pm
[...] If you are a merchant or NY affiliate that was impacted by the “Amazon Tax” law and missed the “solution” be sure to read this post as well. Two Steps to Comply with Tax Law [...]
5 List Your Blog » Blog Archive » Affiliate Marketing: The Shirt Off My Back // Aug 26, 2008 at 12:49 pm
[...] Thanks to Melanie Seery of NYAffiliateVoice, I was able to get the last minute updates and the Two Steps to Comply with the New York Tax Law post I was able to give people some great [...]
6 Affiliate Marketing: The Shirt Off My Back // Sep 2, 2008 at 3:51 am
[...] Thanks to Melanie Seery of NYAffiliateVoice, I was able to get the last minute updates and the Two Steps to Comply with the New York Tax Law post I was able to give people some great [...]
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