Legislative action has been stalled while the Supreme Court was deciding this case. "And that's what has frustrated the state for years".
The online stores have contended that charging sales tax would be "burdensome" for small- to mid-sized shops. Likewise, eBay now does not require sellers to collect state sales taxes. "It's exciting to have it overturned, but it's disappointing to not have a law in place".
Governor Pete Ricketts reacted to the ruling.
The Trump administration backed South Dakota in the case, arguing that no one could have foreseen how rapidly e-commerce would expand.
Democratic U.S. Senator Heidi Heitkamp of North Dakota was on the losing side in 1992 when she was that state's tax commissioner in the ruling that was overturned on Thursday.
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Jeffrey LeSage, Americas vice chairman for tax at accounting firm KPMG, said the ruling "could turn out to be nearly as significant for American businesses as the recent rewrite of the USA federal tax code".
Justice Anthony Kennedy wrote that the rule "each year. becomes further removed from economic reality and results in significant revenue losses to the states". That's because they typically have a physical store in whatever state the purchase is being shipped to.
The group described the decision as a "body blow" to customers and small online businesses.
Under the ruling Thursday, states can pass laws requiring out-of-state sellers to collect the state's sales tax from customers and send it to the state. Up until today's ruling, online vendors without a physical presence in a state, such as an office or a warehouse, were not required to pay any sales tax when a resident bought something. Amazon has long lobbied for a federal law that streamlines online sales tax collection nationwide, but none has ever gained traction. But some states, including Washington, have recently passed marketplace bills which force the company that provides the platform for sellers - such as Amazon, Etsy and, eBay - to collect sales tax rather than the asking the seller to do so.
According to the the Texas Tribune, Texas stands to gain hundreds of millions of dollars in tax revenue, making up for the estimated $1.1 Billion lost in uncollected sales tax every year. Lawmakers in the state, which has no income tax, passed a law created to directly challenge the Supreme Court's 1992 decision. All Florida taxpayers will benefit from today's ruling, which will bring equity and fairness to Florida's sales and use tax. He continued to write "the rule produces an incentive to avoid physical presence in multiple states". South Dakota took him up on the suggestion.