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00:00:01
>> The US Supreme Court Thursday handed down a major victory for states looking to collect more taxes from online sales. In a 5-4 decision, the nation's top court sided with South Dakota in its high-profile fight to force online retailers to collect and hand over sales taxes. Reuters' Lawrence Hurley is at the courthouse.
00:00:21
>> This is a move that could lead to states being able to recoup up to $13 billion of additional tax revenue across the country. And the basis of the Supreme Court's ruling is that they overturned a 26-year precedent in which the court had said that states can only collect sales taxes if a company has a physical presence in the state.
00:00:43
That ruling came at a time before online retail had really taken off.>> The ruling is seen as a win for brick and mortar retailers, who say they were put at a price disadvantage to online retailers who don't have to collect the tax. The decision, though, bad news for online sellers especially for the smaller ones.
00:01:01
Shares of Wayfair, Overstock, Etsy, and eBay all fell in the ruling. Amazon was weaker but not by much since it already collects sales tax. The Trump administration, which has often derided Amazon for forcing Mom and Pop shops out of business backed the South Dakota lawsuit. But the ruling did not evenly split down ideological lines.
00:01:23
Chief Justice Roberts dissented, breaking from other conservatives on the court. This may not be the end of the legal battle, though. Conservative Justice Anthony Kennedy in writing their major decision warned, the law could yet face legal challenges on other grounds