Carri Rocha runs Pocketyourdollars.com, which is an Amazon affiliate reseller. If Minnesota imposes what is called a “nexus” tax, Amazon would sever their relationship with her and just sell to people in Minnesota directly to avoid the sales tax.
A representative for Amazon agreed and told the tax committee that his company would likely sever relations with affiliate sellers in Minnesota if the tax were imposed.
Rocha said the solution needs to come from the federal government. Representative Ann Lencewski (DFL-Bloomington) has the Mall of America in her district. She says the real purpose of the tax is to bring some fairness to the system. Right now internet sellers don’t have to pay sales tax, but “bricks and mortar” retailers do, which she says is unfair. Representative Lencewski agreed there needs to be a federal solution, but the federal government won’t act.