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Q: Why did Amazon kill their affiliate program in Minnesota?
A: To the best of my knowledge, Minnesota Senate File 458, aimed principally at Amazon tried to force Amazon to pay Minnesota sales taxes by , and predictably as they have with similar attempts in NC, CO, HI, RI, and Amazon simply decided to end the program for Minnesota residents. The bill, authored by Minnesota State Senator Kathy Sheran from Mankato, MN (email: sen.kathy.sheran@senate.mn) just took incomes away from entrepreneurs and bloggers Statewide, while producing exactly zero benefits for Minnesota.
Amazon's affiliate marketing program is called the Amazon Associates Program. Individuals who have websites or blogs can link to products on Amazon. If somebody visiting the blog clicks on the link, goes to Amazon, and purchases the product, the blogger receives a small commission. This is online advertising where the website is only paid if a product sells. And, the website has the option of only linking to products it likes.
In 1992, the Supreme Court held (Quill Corp. v. North Dakota) that businesses must only collect sales tax where they have a "physical" presence. Minnesota, in an attempt to get more sales tax revenue, decided that Amazon affiliates that live in Minnesota created a sales nexus for Amazon in Minnesota effectively giving Amazon a physical presence here (although Amazon owns no warehouses, buildings, or employees here). The Minnesota law now reads: "A retailer is presumed to have a solicitor in this state if it enters into an agreement with a resident under which the resident, for a commission or other consideration, directly or indirectly refers potential customers, whether by a link on an Internet Web site, or otherwise, to the seller."
This short sighted money grab attempt by Minnesota to extract more and more revenue backfired, as not one dollar will be collected by Amazon to be remitted to the State. Amazon simply ended the program for Minnesotans (only.) The only result is that thousands of Minnesota residents who were Amazon affiliates will no longer be able to make money promoting an Amazon book on their blog for a small commission, building a side business providing content and referrals to Amazon.
Consider it a penalty for being a resident of Minnesota, land of 50,000 taxes.
A: To the best of my knowledge, Minnesota Senate File 458, aimed principally at Amazon tried to force Amazon to pay Minnesota sales taxes by , and predictably as they have with similar attempts in NC, CO, HI, RI, and Amazon simply decided to end the program for Minnesota residents. The bill, authored by Minnesota State Senator Kathy Sheran from Mankato, MN (email: sen.kathy.sheran@senate.mn) just took incomes away from entrepreneurs and bloggers Statewide, while producing exactly zero benefits for Minnesota.
Amazon's affiliate marketing program is called the Amazon Associates Program. Individuals who have websites or blogs can link to products on Amazon. If somebody visiting the blog clicks on the link, goes to Amazon, and purchases the product, the blogger receives a small commission. This is online advertising where the website is only paid if a product sells. And, the website has the option of only linking to products it likes.
In 1992, the Supreme Court held (Quill Corp. v. North Dakota) that businesses must only collect sales tax where they have a "physical" presence. Minnesota, in an attempt to get more sales tax revenue, decided that Amazon affiliates that live in Minnesota created a sales nexus for Amazon in Minnesota effectively giving Amazon a physical presence here (although Amazon owns no warehouses, buildings, or employees here). The Minnesota law now reads: "A retailer is presumed to have a solicitor in this state if it enters into an agreement with a resident under which the resident, for a commission or other consideration, directly or indirectly refers potential customers, whether by a link on an Internet Web site, or otherwise, to the seller."
This short sighted money grab attempt by Minnesota to extract more and more revenue backfired, as not one dollar will be collected by Amazon to be remitted to the State. Amazon simply ended the program for Minnesotans (only.) The only result is that thousands of Minnesota residents who were Amazon affiliates will no longer be able to make money promoting an Amazon book on their blog for a small commission, building a side business providing content and referrals to Amazon.
Consider it a penalty for being a resident of Minnesota, land of 50,000 taxes.
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