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Go deeper: How the online sales tax ruling will affect consumers

Supreme Courthouse
Visitors line up outside the U.S. Supreme Court plaza before the court handed down decisions June 18, 2018. (Photo by Chip Somodevilla/Getty Images)

The Supreme Court ruled 5-4 Thursday to allow states to collect sales tax from online and out-of-state retailers.

Why it matters: As the U.S. tries to catch up with digital companies that operate without a physical presence, the ruling allowing states to tax e-commerce providers outside their state borders has created an extra hurdle for companies handling online transactions. The ruling may prompt Congress to introduce new legislation for an overhaul on unifying e-commerce for all 50 states.