Supreme Court Rules States Can Require Online Retailers To Pay Sales Tax

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PHILADELPHIA (CBS) —The days of tax-free online shopping could soon be over because the Supreme Court ruled Thursday that states can now require online retailers to pay sales tax.

The decision sent share prices for Amazon, Overstock and Wayfair tumbling.

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Before the explosion of online shopping, the Supreme Court ruled in 1992 that online retailers only had to collect sales tax if they had a physical presence in the state.

The ruling is a big win for retailers with brick-and-mortar stores, like target and Walmart.