John W Dozier Jr commented extensively on the New York affiliate tax law. Predicting that other states would follow suit, and over time there would become a sort of "tax haven" that one or two states would foster by taking a hands off approach to trying to create sales tax liability for purchases connected a state's "in-state" affiliate marketers, Mr. Dozier laid out a rather bleak forecast for affiliate marketers. Now, things are moving in the direction Mr. Dozier anticipated.
Amazon has fired all of its affiliate marketers in Rhode Island and North Carolina. Overstock.com has done them two better, and just announced the termination of affiliates in North Carolina, Rhode Island, Hawaii, and California in response to taxation issues.
Here at Traverse Internet Law, we continue to see this trend evolving at a quicker pace. What state will step up and offer refuge? Just goes to show that state (legislative) intervention into the business of the web is a huge problem with far reaching unintended consequences.