Overstock.com Drops NY Affiliates

Posted by Janet Attard

Legislators, Heads Up: Before you enact laws that you think might bring in more money to your coffers, consider what those laws do to the small businesses in your state – and how much you’ll lose in both sales tax and income tax when those small businesses go out of business as a result of your legislation.

Case in point: New York State’s recently passed law requiring businesses with affiliates located in New York State to collect taxes on all New York State purchases if NY affiliate sales exceed $10,000, even when the company, itself, does not have a physical presence in the state.

Laws like that can cause companies outside of New York to stop doing business with NY companies. And that’s exactly what at least one company has done. Overstock.com, a company that has affiliates in many states has issued a notice to all New York state affiliates that they are being dropped from the Overstock Affiliate Program. (Business Know-How is a New York company and is was an Overstock affiliate, however not an active one.)

I don’t know how many New York businesses made a significant amount of their business from Overstock, but if there are any, they now can forget that source of income. And, New York state can forget about income tax they would have collected on the business owners’ earnings.

New York: You’re losing far more than you’ll gain with foolish laws like this one.

Get started image

Ready to get started?

Get the expert support you need

Start Now

Related Articles

Singing Your Way to Success

by Rob Spiegel, on July 20, 2022

What Traits Does It Take to Start a Business?

by Rob Spiegel, on July 20, 2022

Direct Marketing Campaigns That Turn Prospects Into Customers

by Susan Friedmann, on July 20, 2022

Book Excerpt: Answering Your Call

by John P. Schuster, on July 20, 2022

10 Tips to Cope with Negative Emotions at Work

by Dr. Rachna D. Jain, on July 20, 2022

When Success Feels Like Failure

by Leslie Godwin, MFCC, published by Health Communications, Inc., on July 20, 2022