TALLAHASSEE, Fla. (WTXL) -- Online shopping is all the rave. People are drawn to wide selections, low prices, free shipping, all from the comfort of their home.
It's always been a tax-free zone for shoppers, putting local businesses at a disadvantage. However, a new online sales taxes may level the playing field for brick-and-mortar stores.
On Thursday, The Supreme Court ruled that internet retailers must collect sales taxes even in states where they have no physical presence.
This closes a loophole. Economic experts say it will help brick-and-mortar businesses that have always charged sales taxes while many online competitors didn't.
"This Supreme Court decision said no, that's wrong. That it was wrong all along. But it also recognizes the way commerce is being done over the last 20, 30 years and the way it's going to continue to be conducted," said Dominic M. Calabro, President of Florida TaxWatch.
Calabro says Florida loses hundreds of millions of dollars every year from online retailers.
Local businesses are the ones who will truly benefit from the new sales tax. Since shoppers won't save money online, they have more incentive to actually go to the store and leave with what they're looking for.
One of those local businesses, Retrofit Records, has been in Tallahassee for seven years despite the popularity of online music.
"It was like 50 percent or so increase for online retail sales last year versus like a few percentage point increasing for physical brick-and-mortar retails," said Charod Bines, Owner of RetroFit Record.
Bines is optimistic the change in online taxes will encourage more people to shop local.
"Once you get out and support local business, that money goes right back into the community that you live in and you can see that," said Bines.
