Amazon Drops Minnesota Affiliate Websites Over Sales Tax

ST. PAUL (AP) - Amazon.com says it will drop its Minnesota-based affiliate websites before the state's online sales tax becomes law July 1.

The websites receive a fee for referring shoppers to Amazon's online store. The new law requires certain online businesses with a physical presence or affiliates in Minnesota to charge a sales tax on items it sells to state residents.

In an email to affiliates, Amazon said it's not opposed to collecting an online sales tax, but not on a state-by-state basis. Amazon says federal legislation is the only way to create a simplified framework for an interstate sales tax.

About 5,200 affiliates in Minnesota make money from online advertising by working with Internet retailers.