Cafepress announced that as of July 1, 2008 all their affiliates who live in the State of New York will be dropped. Cafepress is one of many companies who dropped NY affiliates due to new legislation passed in New York that has impacts on “tax registration, collection and remittance”. Before the NY legislation if a company didn’t have a physical location within a particular state then the state could not require that they pay state taxes. The changes in NY now require that companies from all ecommerce sites with affiliates (including Cafepress and other t-shirt companies) based in New York state pay state taxes. New York was estimating to raise $50-$70 million in taxes but the plan has backfired as many companies have pulled out of New York or filed lawsuits (Amazon.com) against the state.
I am sure other t-shirt companies will follow but I haven’t heard any specifics. You can check out a list of other companies who also have dropped their NY affiliates at abestweb.com and watch a video of Shawn Collins at Affiliate tip on how this whole mess started. Marketing Sherpa also has an article about whether or not the legislation will spread to other states.
Surprisingly there are NO designs on cafepress for “New York affiliate“. Not sure if there truly aren’t any designs or if the terms have been blocked to avoid controversy. But I did find a couple over at Zazzle.