For years purchases made online were not subjected to sales tax. Over time, that changed, based on whether of not the retailer had a physical presence in the state the item was being shipped to.
But Thursday morning the U.S. Supreme Court ruled that mode of thinking is outdated and unfair, and decided that states can impose sales taxes on all online sales, based on where the product is being shipped.
“The 5-4 decision broke with 50 years’ worth of legal rulings that barred the states from imposing sales taxes on most of the purchases their residents make from out-of-state retailers,” NBC News reports.
This is being considered a big win for large online retailers like Amazon, and a loss for small retailers, sometimes “mom and pop” online businesses who will now be subjected to the same rules.
Bottom line: you’re going to be paying more for items you buy online, if you weren’t already. Also, states will be taking in more in sales taxes, which they will have to decide how to use.
Image by frankieleon via Flickr and a CC license