SCOTUS

New Jersey, Pennsylvania, and other states are hoping to capitalize on gaming legalized by the Supreme Court's decision on Monday.

Many lawmakers in Congress have deferred to the high court on the issue in the belief that helping state and local governments collect sales tax for e-commerce might be construed as a new tax rather than an enforcement measure.

The case involves as much as $100 billion in state and local sales tax revenue over the next decade, according the e-commerce retailers that are defendants in the lawsuit.

The justices and attorneys both sides in a case involving South Dakota all appeared to prefer action by Congress to regulate this area of interstate commerce that has been forced on the high court by legislative gridlock.

A high court ruling on online sales taxes that favors the states “could gradually improve long-term revenue growth prospects,” Fitch said.

Both sides of the e-commerce sales tax debate tee up their arguments before the high court hears the case on Tuesday.

The report illustrates how federal, state and local laws must be changed if the Supreme Court rules in favor of South Dakota and against Wayfair Inc. in an online sales tax case.

Some states don't remit all of the sales tax funds that are due to local governments from e-commerce retailers.

The Trump administration and a bipartisan group of four senators weigh in on the states' ability to collect online sales taxes in friend-of-the-court briefs filed with the Supreme Court.

South Dakota, which has no state income tax and relies on sales and use taxes for much of its revenue, will make its oral arguments to the high court on April 17.

Justice Elena Kagan said a ruling in favor of Janus would overturn laws in 23 states, the District of Columbia and Puerto Rico and invalidate thousands of municipal contracts covering millions of public employees invalid.