George Isaacson (left), lead counsel for the defendants in the South Dakota vs. Wayfair case, outside the Supreme Court. Photo: Alex Wong/Getty Images.

Supreme Court justices seem split on whether to allow state governments to collect sales tax from online retailers, a move that would drastically change long-standing interstate e-commerce rules.

Why it matters: It's one more example of the Supreme Court grappling with the collision of existing legal precedent and the realities of the tech-driven economy.

Driving the news: In the case before the high court Tuesday, South Dakota sought to overturn established rules that only allow states to require retailers to collect sales taxes if they have a physical presence there. Online retailers Wayfair and Overstock say changing the rules would force online retailers to deal with a confusing patchwork of state tax laws.

Most large online retailers already pay sales tax, but many of the smaller vendors using their platforms often don't. Small- and medium-sized online retailers may struggle with the logistics of collecting and remitting sales tax in the 45 states that have one.

A state-by-state sales tax system could force small sellers to rely on large online retail platforms like Amazon, Etsy and eBay who have the infrastructure to deal with the complexity, said Steve DelBianco, President and CEO of NetChoice, an e-commerce trade association.

  • Those online marketplaces may also feel the biggest effect: The Government Accountability Office estimates that between $3.9 billion and $6.2 billion in taxes could have been collected on goods sold by smaller vendors in 2017, the WSJ pointed out.

In Congress: Online retailers say it's up to Congress to address the issue — even though Congress has failed to act. Rep. Bob Goodlatte has pushed legislation to streamline online sales tax, but those negotiations stalled.

What's next: A decision is expected by the end of June.

Go deeper: USA Today has a good overview of Tuesday's arguments.

Go deeper

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Schumer: "Nothing is off the table" if GOP moves to fill Ginsburg's seat

Sen. Chuck Schumer. Photo: Tasos Katopodis/Getty Images

Senate Minority Leader Chuck Schumer told congressional Democrats on a conference call Saturday that "nothing is off the table next year" if Senate Majority Leader Mitch McConnell and his Republican allies move to fill Justice Ruth Bader Ginsburg's Supreme Court seat in the coming weeks.

Why it matters: Schumer's comments come amid calls from fellow Democrats to expand the number of judges on the Supreme Court if President Trump and Senate Republicans move to fill the newly empty seat next time the party holds a majority in the Senate.

ActBlue collects record-breaking $30 million in hours after Ginsburg's death

A makeshift memorial in honor of Justice Ruth Bader Ginsburg in front of the U.S. Supreme Court on Sept. 19. Photo: Samuel Corum/Getty Images

ActBlue, the Democratic donation-processing site, reported a record-breaking $30 million raised from 9 pm Friday to 9 am Saturday in the aftermath of Supreme Court Justice Ruth Bader Ginsburg's death, NPR writes and ActBlue confirmed to Axios.

Why it matters via the New York Times: "The unprecedented outpouring shows the power of a looming Supreme Court confirmation fight to motivate Democratic donors."