Amazon stops paying commissions to Minnesota websites

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Minnesota-based websites that refer shoppers to Amazon will soon stop getting a commission from the online retail giant.

It's a response to Minnesota's new law extending the sales tax to online purchases from companies that have stores or affiliates in the state.

The Pioneer Press reports Minnesota affiliates received an email alerting them that they'll no longer be paid for the traffic they direct to Amazon. The change takes effect on July 1st, which is also when the new state law kicks in.

In its email, Amazon asserts that Minnesota's law is unconstitutional and reaffirms its support for a federal bill governing interstate sales taxes.

The Star Tribune reports the state revenue department is working on the issue but was not ready to comment. A Minneapolis attorney tells the paper Amazon's decision will hit a lot of bloggers in the wallet.

Amazon is not the only online retailer to end the payments to avoid being subject to the state sales tax, But, as one Maple Grove affiliate put it to the Pioneer Press, "Amazon is the big dog."

The big dog has also pulled out of its affiliate agreements in several other states that have passed sales tax laws similar to Minnesota's, the Star Tribune says.

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