The New York Times' Saul Hansell said Overstock.com has cancelled its relationships with affiliates in New York, citing a report on a blog for affiliate marketers (http://blog.affiliatetip.com/archives/overstockcom-drops-new-york-affiliates/). The State of New York passed legislation recently requiring Internet retailers with affiliates residing in the state to collect New York sales tax - because those affiliates count as a physical presence. Amazon.com rejected those claims and sued the State of New York and its governor (http://www.auctionbytes.com/cab/abn/y08/m05/i02/s01). But apparently Overstock.com is not up for a fight with the state over its 3,400 affiliates.
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