On Tuesday, the U.S. Supreme Court will hear arguments in South Dakota v. Wayfair Inc., a case that may overturn a 25-year-old precedent under which retailers aren't compelled to collect state taxes if they don't have a physical presence in the state, according to The Wall Street Journal. A decision in the case is expected by the end of June.
Experts expect the court to overturn the precedent, which was set at a time when people shopped out of state primarily through mail-order catalogs. Many brick-and-mortar retailers say the current rules make it difficult for them to compete with online businesses.
Third-party vendors could have collected between $3.9 billion and $6.2 billion in taxes on online marketplaces in 2017, according to the Government Accountability Office.