Minnesota has become the latest state to consider taxing consumers on internet sales by proposing the so-called "Amazon Tax." House Bill 401/Senate Bill 282 would require retailers with no physical presence in the state to collect sales tax on digital products purchased by Minnesotans and remit it back to the state.
Current federal law bars states from forcing businesses to collect sales tax unless they have a physical nexus in the state. Following New York's lead, the legislation would circumvent the intent of the lawby presuming that a company has a physical nexus if business is solicited through a third-party advertiser that is based in Minnesota.
