Amazon drops Minn. associates over internet sales tax

[Blake]

MINNEAPOLIS (KMSP) -

Amazon is shutting down the accounts of Minnesotans participating in its Associates Program, citing the state's new "unconstitutional" internet sales tax.

The Amazon Associates Program allows anyone with a website to earn advertising fees for referrals that lead to the shipment or download of a product from Amazon.

Starting July 1, major online retailers like Amazon, iTunes and eBay must collect 6.875 percent sales tax on purchases made in Minnesota.

While Amazon opposes Minnesota's internet sales tax, the company supports a federal bill that would require online retailers to collect state sales tax nationwide. Amazon said the "simplified, constitutional framework" of the federal bill would allow them to re-open the Associates Program to Minnesotans.

source:http://www.myfoxtwincities.com/story/22620375/amazon-drops-minnesota-associates-internet-tax