Article update: the New York law to require web sites to collect sales tax has been signed in to law, ands it is now drawing lawsuits from e-commerce sites.

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Last week, New York Governor Eliot Spitzer introduced–and quickly withdrew–plans to require Internet retailers who use affiliate marketers in that state to collect sales tax payments.

This would not have technically been a new tax on New Yorkers, who are already required to pay sales tax on goods purchased online. The state, however, lacks an effective collection mechanism for this, and although residents are asked to report such purchases on their annual tax forms, few ever do. So while it would not be a new tax, it would certainly result in new revenue.
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