Get ready for more sales taxes on online purchases

Enlarge / The US Supreme Court building in Washington, DC. (credit: Getty Images | Mike Kline)

State governments may require online retailers to collect sales taxes even in states where the retailers have no physical presence, the US Supreme Court ruled in a decision issued today.

The 5-4 ruling could clear the way for more states to require collection of sales taxes on products ordered online from out-of-state retailers.

The case, South Dakota v. Wayfair, Inc., Et Al., involved a South Dakota state law "requiring out-of-state sellers to collect and remit sales tax 'as if the seller had a physical presence in the State,'" the decision noted. Online retailers argued that the law was unconstitutional, and the State Supreme Court agreed, but the US Supreme Court overturned the state court ruling. South Dakota expects to collect another $48 million to $58 million in taxes a year because of this ruling.

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