States were eager to collect the estimated $13.4 billion in annual revenue they could potentially glean from charging online sales taxes.
Not having to pay state sales tax also gave many internet retailers an edge on their brick-and-mortar counterparts, as sales tax contributes to the overall purchase price of a good.
Last year, third-party sales earned Amazon almost $32 billion across the globe, according to SEC filings, and the business is growing rapidly. She says the court decision will "level the playing field for IL brick-and-mortar retailers".
However, before Thursday's Supreme Court decision state leaders were bracing for companies to challenge that law in court.
Camera gear is about to get more expensive for most online shoppers in the United States.
In 2016, South Dakota passed a law requiring out-of-state companies to collect sales taxes if their total sales exceeded $100,000 or at least 200 transactions.
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Supreme Court Rules States Can Charge Online Shoppers Sales Tax
Supreme Court ruling out Thursday could force New Hampshire businesses to collect a sales tax on behalf of other states . Thanks to Amazon's nationwide network of warehouses, the company already collects sales tax for the majority of states .
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Some online retailers have already been collecting some state taxes.
In a 5-4 vote, the court overturned the 1992 "Quill vs". State Representative Tim Brown (R-Crawfordsville) said only about one percent of people in IN actually paid an online sales tax a year ago.
"(The prior decision) puts both local businesses and many interstate businesses with physical presence at a competitive disadvantage relative to remote sellers", Kennedy wrote.
"As a regional destination for working, eating, entertainment, and shopping, sales tax revenue is a major part of how we operate our government and improve our community", said Chris Floore, assistant to the county manager for public affairs for Macon-Bibb County.
Shane M. Finn directs HBK CPAs & Consultants State and Local Tax ("SALT") Practice. With the bigger players now forced to add sales tax, the total cost of online products becomes less of an issue for smaller businesses with physical presences in the state.
But when and if that happens depends on the state: Some may pass laws quickly, others can take years and some states, like the ones that don't have a sales tax, may choose not to require it, says Mr. Bishop-Henchman.