Amazon is closing the accounts of Minnesotan’s who participate in the Amazon Associates program, their widely popular affiliate arrangement that compensates marketers and advertisers for e-commerce transactions.
The action is direct response to the 6.875 percent sales tax on purchases made in Minnesota starting July 1, 2013. In an abrupt blanket notice sent to Amazon Associates in Minnesota, the company states:
“We are writing from the Amazon Associates Program to notify you that your Associates account will be closed and your Amazon Services LLC Associates Program Operating Agreement will be terminated effective June 30, 2013. This is a direct result of the unconstitutional Minnesota state tax collection legislation passed by the state legislature and signed by Governor Dayton on May 23, 2013, with an effective date of July 1, 2013. As a result, we will no longer pay any advertising fees for customers referred to an Amazon Site after June 30 nor will we accept new applications for the Associates Program from Minnesota residents.”
“While we oppose this unconstitutional state legislation, we strongly support the federal Marketplace Fairness Act now pending before Congress. Congressional legislation is the only way to create a simplified, constitutional framework to resolve interstate sales tax issues and it would allow us to re-open our Associates program to Minnesota residents. We thank you for being part of the Amazon Associates Program, and look forward to re-opening our program when Congress passes the Marketplace Fairness Act.”