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Martin Moylan
St. Paul, Minn.

Tax-free Amazon sales ending next week in Minnesota

Amazon
In file photo, a worker sorts packages at an Amazon.com fulfillment center in Goodyear, Ariz.
Ross D. Franklin/ AP 2010

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Minnesotans don't have much longer to get orders from Amazon.com tax-free.

Starting Oct. 1, the online retailer says it will start collecting sales taxes from Minnesota residents. Online-only retailers don't have to collect state sales taxes if they do not have a physical location in a state.

But Amazon also says it is considering various opportunities to expand in Minnesota.

The retailer has been collecting sales taxes in an increasing number of states as it establishes warehouse or other operations in them to speed the delivery of goods.

The state revenue department estimates Minnesota loses $400 million a year in uncollected sales taxes for online, catalog and other purchases made by state residents. Richfield-based Best Buy has long complained that the sales tax exemption for online merchants gives them an unfair price advantage.