Amazon Drops MN Affiliate Websites over Sales Tax

Updated: 06/19/2013 7:32 AM By: Tom Hauser

Thousands of bloggers and website operators in Minnesota will soon begin losing out on sales commissions from Amazon, the huge online retailer.

On July 1 a new tax law goes into effect that will force online retailers to collect sales tax if they have a physical presence in the state, including "associates" who send Amazon business through their websites. 

Previously, a "physical presence" was considered a bricks and mortar store or distribution center.

In an email to Minnesota associates notifying them their accounts would be closed, Amazon says, "This is a direct result of the unconstitutional Minnesota state tax collection legislation passed by the state legislature." 

Amazon and other online retailers plan to avoid collecting the tax by discontinuing their associate programs in Minnesota.