Supreme Court ruling could have huge impact on Texas economy

The Supreme Court ruled on Thursday that local and state governments can now force online retailers to collect sales tax in states where they do not have an online presence such as a storefront or a warehouse. The ruling came on a 5-4 majority decision with Justices Anthony Kennedy, Clarence Thomas, Ruth Bader Ginsburg, Samuel Alito and Neil Gorsuch voting in favor, with John Roberts voting against along with Stephen Breyer, Sonia Sotomayor and Elena Kagan.

The 5-4 decision overturns a Supreme Court Ruling made in 1992 that prevented the practice.

Justice Anthony Kennedy wrote in the opinion “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.”

According to the the Texas Tribune, Texas stands to gain hundreds of millions of dollars in tax revenue, making up for the estimated $1.1 Billion lost in uncollected sales tax every year.

Local business owner of the Texas Store Mark Rosen was happy to see the ruling of the Supreme Court and thinks

“Its, something that was long overdue….I think it’s going to bring an impact to the community….I think Its a win – win”

Although some in Texas aren’t so excited about the taxation of their online shopping and even say they believe it will deter them from making online purchases, since shopping online is a method they use to save money, while others stating the decision will not change the way they spend online.