Amazon Will Start Collecting MN Sales Tax Oct. 1
MINNEAPOLIS (AP) — Amazon.com Inc. is ending its no sales tax practice for Minnesota customers next week.
The company hasn't clarified why the change is occurring, other than it "will be required" to collect sales taxes from the state's residents starting in October. The Star Tribune reports Amazon may be starting an operation in Minnesota that requires it to do so by law.
Retail analysts say the company is likely building a distribution center to provide same-day delivery in the Twin Cities. Gene Munster, an analyst with Piper Jaffray & Co. in Minneapolis, says Amazon could also be in the process of opening up a corporate office or expanding its cloud computing operation.
Online-only retailers aren't required to charge sales tax in Minnesota.