Close this menu Pulls its New York Ads to Avoid Expanded (and likely Unconstitutional) Sales Tax

As a result of New York’s new sales tax law, announced that it will bid adieu to its New York-based affiliates. 3,400 New York-based affiliate advertisers will no longer provide advertising for the company.

In a previous blog post,  I talked about how the New York legislature in April passed a law designed to increase sales tax revenue from Internet sales. The law is referred to as the “Amazon tax” because of the way it broadens the sales tax law to apply to Amazon’s Associates Program, thereby achieving the necessary legal nexus for New York to force Amazon and other Internet retailers to collect and remit taxes on all sales to NY residents.

I like Overstock’s reaction here. Instead of rolling over and complying, it’s thumbing its nose at New York’s law and the up to 9.5% sales tax collection burden as Amazon’s lawsuit proceeds in court.