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In a case involving MA online retailer Wayfair, the US Supreme Court Thursday opened the door for states to collect sales taxes on products their residents buy from Internet retailers in other states.

The US Supreme Court on Thursday gave states the ability to require online and out-of-state retailers to collect and send them state sales taxes.

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

Kevin Lyons, spokesman for Texas Comptroller Glenn Hegar, said, "We welcome the court's ruling in this case and are now assessing any potential revenue impacts as a result of this decision as well as whether any rule changes or legislation might be required to achieve the benefits of the decision". They often don't have the resources to handle the patchwork of sales taxes across multiple states, according to the retailers, while larger outlets like Amazon don't have that problem.

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The 5-4 ruling strikes down a decades-old decision that impacted online sales; clearing the path for local governments to charge sales tax on goods regardless of whether or not the business has a "physical" footprint within its boundaries. But half of Amazon's sales are from third-party Marketplace sellers, who for the most part don't collect sales taxes. Louisiana is beefing up its efforts to collect taxes on purchases made from out-of-state in... The conservative chief justice, John Roberts dissented along with liberals Stephen Breyer, Sonia Sotomayor and Elena Kagan.

Andrew Moylan, executive vice president of the National Taxpayers Union Foundation, said the Court dealt a blow to taxpayers and is allowing states the power to tax businesses all over the country. "New Hampshire small businesses do not have the time or resources to become tax collectors for other states". "Issues regarding smaller mom-and-pop retailers, and the amount of sales necessary to impose the collection obligation on them, would be decided on a case-by-case basis", he said. Amazon already taxes items from its own warehouses. Amazon.com Inc. shares fell as much as 1.9 percent before paring losses.

The Trump administration backed South Dakota in the case, arguing that no one could have foreseen how rapidly e-commerce would expand.


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