Amazon calls it quits with Minnesota affiliates

Meghan Holden

Due to a forthcoming online state sales tax, announced Tuesday that it will cut ties with its Minnesota-based affiliate websites.

Amazon will detach from the small businesses before the law goes into effect on July 1. The new tax, which will require certain online businesses with a physical presence or affiliates in Minnesota to charge a sales tax, was signed by Gov. Mark Dayton last month, Pioneer Press reported.

Minnesota Amazon associates were notified Tuesday of the account closures after Amazon said the state tax was "unconstitutional," according to Minnesota Public Radio News.

About 5,200 affiliates in Minnesota make money from online advertising, though not all work for Amazon. The new law will affect about 1,000 online retailers, Pioneer Press reported.