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This went against a 1967 Supreme Court ruling, but to be fair, that ruling was based on mail-order retailers, and the basis of the court's ruling was essentially "Look, it's not like people are buying everything through the mail!"

This overturned two Supreme Court rulings: 1967's National Bellas Hess, Inc. v. Department of Revenue of IL and 1991's Quill Corporation v.

"The Internet's prevalence and power have changed the dynamics of the national economy", wrote Justice Anthony Kennedy in the majority opinion.

Large online retailers, like Amazon, tend to collect sales tax in most states, but not all.


The decision is a big win for major corporations such as Apple and Walmart, who generally pay sales tax due to their "physical presence" in most states throughout the country. Recently that has been expanding with States pushing to get sales taxes on sales even when the company does not have a physical presence in that area. Trump's own online store, TrumpStore.com, only collects sales tax in two states, according to The Wall Street Journal. States could enact minimum sales thresholds for triggering the online tax collection.

It ruled that the provision amounted to a "judicially created tax shelter" that put some companies at an advantage. Chief Justice John Roberts joined Stephen Breyer, Sonia Sotomayor and Elena Kagan in the dissent. This system standardizes taxes to reduce administrative and compliance costs: It requires a single, state-level tax administration, uniform definitions of products and services, simplified tax rate structures, and other uniform rules. "This Court should not prevent States from collecting lawful taxes through a physical presence rule that can be satisfied only if there is an employee or a building in the State".

"There was a time when we wanted the United States, as a matter of policy, to protect nascent internet businesses by keeping down the tax burden, but that time is long gone", he said.

South Dakota has estimated that it could take in up to $50 million a year in additional revenue with these taxes being collected.


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