Amazon and other online retailers are getting hit after the Supreme Court rules states can collect taxes on internet sales (AMZN)

“The Internet revolution has made Quill’s original error all the more egregious and harmful,” Justice Anthony Kennedy said in delivering the opinion. “Quill Court did not have before it the present realities of the interstate marketplace, where the Internet’s prevalence and power have changed the dynamics of the national economy. The expansion of e-commerce has also increased the revenue shortfall faced by States seeking to collect their sales and use taxes, leading the South Dakota Legislature to declare an emergency.”

Only five states do not have a state-wide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. Alaska and Montana allow individual cities to collect local sales taxes, according to the Tax Foundation.

The 5-4 ruling is widely seen as a victory for brick-and-mortar stores, which previously said online retailers’ ability to avoid sales-tax collection gave them an advantage. States also argued against the previous statute, saying it reduced their potential revenue from sales taxes as more consumers turned to digital shopping options.

President Donald Trump has also criticized Amazon, whose founder, Jeff Bezos, also owns The Washington Post, saying the online retailer does not collect any sales tax. Even before the Supreme Court’s ruling, however, Amazon had said it was moving to collect state sales taxes on its inventory sold in all 45 states with statewide taxes.

Markets Insider