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How will Affiliate Marketing Online be Affected by the Sales tax?

Affiliate marketing online deals related to New York or California based Internet entrepreneurs will be met with sales tax regardless if online out-of-state-retail sales in nature.

Sadly enough, a great number of affiliate marketers are affected since their purchasers will find them less competitive in terms of selling prices. Hence, online purchasers will opt to buy their product from merchants who are not New York or California based.

Initially passed and made effective by the New York state, some merchants chose to defy this additional burden imposed on them by simply closing shop in New York. As far as website exposures are concerned, affiliate marketing online in the state of New York will no longer work because, the state can possibly lose web presence as far as e-commerce is concerned.

The originally required non-physical presence in the specific state will no longer be observed. This will be collected from the purchases-user as an addition to the selling price of the merchandise, even if they are from out of New York or California.

As an affiliate marketing online deal, the merchant will be required to remit such taxes collected in favor of the New York state government and will have to adjust their online selling prices in the affected state to accommodate the implementation of the sales tax. Similarly, the California government where Google is located is now in the process of approving the mandate of the sales tax provision.

How will it affect the affiliate marketer?
  • A merchant who relies on his New York based affiliate marketing online, to handle his products' advertising and promotions will have to charge his online customer a certain percentage of sales tax.

  • Simply speaking, the purchaser residing in a state that imposes sales tax will no longer find it cheaper to buy online. In the same way that a purchaser residing in other states will find New York and California based products more expensive.

  • Web hosts and merchants with addresses in New York or California will have to impose sales tax on their online sales. Hence, they will not be competitive with other merchants whose states do not impose such taxes.

  • Google's Pay per Click earnings, Adwords, and Adsense all other services where Google collects a fee will have to impose the sales tax. They will have to pay additional cost for advertising due to the sales tax.
This may all sound too confusing for an ordinary affiliate marketer engaged in affiliate marketing online deals. The bottom line is simply this, selling or buying goods and services online if originating from New York or California based establishments will cost more due to the imposition of sales taxes.

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