“Amazon Tax” Could Wipe Out Some Businesses

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Carri Rocha website owner

Click on photo of Carri Rocha to hear how her business could be wiped out by an "amazon tax"

Click on photo of Carri Rocha to hear how her business could be wiped out by an "amazon tax"

A website owner from Maple Grove tells the House tax committee that trying to make Amazon.com charge sales taxes for goods sold in Minnesota will not bring in revenue and will put her out of business.

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.

Federal solution needed

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.

Michael McIntee

Michael McIntee is a former network TV news executive with more than 30 years of broadcasting experience. He began his broadcasting career at the University of Minnesota's student radio station. He is an expert producer, writer, video editor who has a fondness for new technology but denies that he is a geek. More about Michael McIntee »

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