Comment Re:All your tax avoidance schemes are done (Score 1) 293
And by using affiliates as a sales force, a "significant business nexus" is established in the purchaser's State. Hence, they have to collect sales tax for the purchaser's State, because they pay a sales force there.
I admit I do not authoritatively know how Amazon's affiliate program works. I read TFA and have listened to some pod casts that want listeners to make Amazon purchases through their link. I'm not sure how accurate it is to describe or catagorize Amazon affiliates as a sales force.
I have trouble seeing how the commission an affiliate receives is that significantly different than paying for an outright ad. For example, if a mail-order company took out an ad in The New York Times but listed an order-taking phone number that was specific & unique to that TNYT ad, and the mail-order company made a deal with TNYT to pay them a little extra every time an order is placed using that phone number... I am now to believe that creates a "substantial nexus" of the mail-order company in New York state?
What it would come down to, for me, is how Amazon pays their affiliates. If Amazon was paying them as employees, then that would justify claiming they are Amazon's sales force. (I think it is a fair assumption that Amazon is not doing that.) If Amazon is paying them proportionately on the click-through purchases, then I don't see how it can be treated anything other than an ad contract.
If that is the case, then there is nothing to stop New York state from expanding their law to demand any out-of-state advertiser in a New York publication, TV, radio station or website start collecting sales tax for anything sold to a New York resident.