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Supreme Court rules states can collect sales tax from online retailers

The Supreme Court ruled Thursday in South Dakota v. Wayfair that states can require online retailers to collect sales tax, even if the business has no physical presence in the purchaser's state. The decision was 5-4, with Justices John Roberts, Stephen Breyer, Sonia Sotomayor, and Elena Kagan in dissent.

Justice Anthony Kennedy wrote the opinion, saying that "the internet's prevalence and power have changed the dynamics of the national economy." The court overruled the 1992 decision in Quill Corp. v. North Dakota, which held that for a state to collect sales tax from an online retailer, the retailer would have to have a physical location of business in that state.

The decision is seen as a win for local businesses and governments. Read the decision here.