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.
The St. Paul Pioneer Press reports that 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.