WASHINGTON, D.C. (NBCNC) – Online shopping will soon become more expensive for many Americans. On June 21 in a 5-4 decision, the U.S. Supreme Court ruled that states can require internet retailers to collect sales taxes on online purchases.
The decision, which overturns an earlier Supreme Court precedent, broke with years of legal rulings that barred states from imposing sales taxes on most of the purchases their residents make from out-of-state retailers.
The ruling will boost state revenues at the expense of consumers and sellers who have avoided sales taxes in the past.
The decision was a victory for South Dakota, which asked the court to uphold its recently passed law imposing an internet sales tax.
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