A Supreme Court ruling was passed on Thursday, giving states more freedom in terms of whether or not they wish to collect online sales taxes from consumers.

The move means that retailers have the choice of collecting sales taxes from online sales, even if the consumers who buy their products don’t have a physical presence in the state. The ruling was passed today on a 5-4 decision that overturned a 1992 Supreme Court precedent that barred states from paying online sales taxes.

The decision could result in consumers paying more for online purchases at a time when states are seeking more cash avenues to fund their infrastructure, health care and education. In making their decision, the Supreme Court justices ruled that South Dakota can now collect online sales taxes from online retailers such as Wayfair, which was sued by the state.

The ruling reversed a 1992 ruling that was designed for states to levy taxes only on businesses that had a brick-and-mortar location within the state. The Supreme Court added that the new law is designed to incentivize businesses to “avoid physical presence” in states, which led to a “judicially created tax shelter” as the previous law was outdated.

“The Internet’s prevalence and power have changed the dynamics of the national economy,” Justice Anthony Kennedy wrote in the majority opinion. “The expansion of e-commerce has also increased the revenue shortfall faced by States seeking to collect their sales and use taxes.”