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As a result of this new decision, states will be able to potentially collect billions of dollars worth of sales taxes from online retailers huge and tiny, from Amazon to Avenue . The ruling comes down against online retailers Wayfair, Overstock.com, and Newegg. The companies have warned that, as a result of the decision, similar companies may have to face around 12,000 local tax jurisdictions, which could lead to some serious chaos. It also means that if you previously turned to the internet in order to get a lower, tax-free price for a product you initially saw in a brick and mortar store, you’ll no longer be able to save the same kind of money. In short: Party’s over. Justice Anthony Kennedy authored the decision, with support from left- and right-leaning court members alike, including Justices Clarence Thomas, Ruth Bader Ginsburg, Samuel Alito, and Neil Gorsuch. “The Internet’s prevalence and power have changed the dynamics of the national economy,” Kennedy wrote. “This expansion has also increased the revenue shortfall faced by states seeking to collect their sales and use taxes.” However, Chief Justice John Roberts, along with Justices Stephen Breyer, Sonia Sotomayor, and Elena Kagan, dissented, noting that this new tax structure could disadvantage smaller sellers. “The burden will fall disproportionately on small businesses,” Roberts wrote in his dissent. “The court’s decision today will surely have the effect of dampening opportunities for commerce in a broad range of new markets.” But don’t go panicking quite yet. As it stands, the ultimate effect of the ruling remains unclear, as online stores will have to gain more clarity on exactly what their own businesses and customers will have to do as a result. Online commerce, of course, is a booming industry, one that is expected to reach a whopping $4.5 trillion by 2021 globally.
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