People may soon pay a more to shop online.
The U.S. Supreme Court decided today that states can force online retailers to collect sales taxes.
The 5-4 decision broke with 50 years’ worth of legal rulings that barred states from imposing sales taxes on most purchases their residents make from out-of-state retailers.
The decision was a victory for South Dakota, which had asked the court to uphold its recently passed law imposing an internet sales tax.
South Dakota concluded in 2016 that the explosion in online sales changed the market drastically. So it passed a law requiring all but the smallest retailers, including internet companies, to collect taxes on the sales they make in the state, even if they had no physical presence there.