What remains to be seen is how states will interpret the court decision and whether they will apply a threshold that might exempt smaller merchants from having to report and collect sales taxes.
In South Dakota, for instance, online sellers that have sales in the state exceeding $100,000 or more than 200 transactions to residents in the state have to remit sales tax.
“A smaller seller that does business there is exempt, it’s not as capable of handling the compliance burden,” said John Buhl, a spokesman for the Tax Foundation.
It would be wise for smaller merchants to keep an eye on Congress and on their states to see what will happen next.
“The best thing for states to collect revenue fairly and efficiently is to set standards,” Buhl said. “There is a chance to do that now.”