A top state official said a U.S. Supreme Court ruling today allowing states to collect sales tax from online retailers shouldn’t change things in Iowa, which already has a state law governing the taxes.

A high-profile retailer, Raygun T-shirt empire chief Mike Draper, supported the decision.

The 5-4 court decision written by Justice Anthony Kennedy reversed an earlier precedent that held that the tax could only be applied to businesses that had brick-and-mortar locations in the state, too. It is expected to boost revenues in some states, USA Today reported. That also means consumers paying more and online retailers charging taxes.

“The Internet’s prevalence and power have changed the dynamics of the national economy,” Kennedy wrote. “This expansion has also increased the revenue shortfall faced by states seeking to collect their sales and use taxes.”

The justices didn’t detail what exceptions states could make to take financial heat off small businesses.

The majority included Justices Clarence Thomas, Ruth Bader Ginsburg, Samuel Alito and Neil Gorsuch. Chief Justice John Roberts dissented, saying the decision should be left to Congress. Justices Stephen Breyer, Sonia Sotomayor and Elena Kagan also dissented, USA Today reported.

Jeff Robinson, a state senior fiscal legislative analyst, said an amended Iowa law, signed by Gov. Kim Reynolds in May, is similar to the South Dakota legislation the court upheld. A fiscal note reports the state expects $55.8 million from online sales in 2019, rising to $148.5 million in 2024.

“On the surface, I would say that the impact of this ruling has already been incorporated into state revenue estimates as reflected on our balance sheet,” Robinson said. “Had the court ruled the South Dakota law not constitutional, then there would have been a fiscal issue.”

The Iowa Department of Revenue’s website reports that online sales in Iowa are subject to state sales tax, while downloaded information and internet access fees aren’t.

Of course, the decision is likely to create a huge buzz among online sellers.

Des Moines-based Raygun, which has three stores in Iowa and a Kansas City store in Missouri, makes about 25 percent of its sales online, founder Draper said.

“That’s like $750,000 a year, so the online store is still pretty sizable,” Draper said. “Currently, since we have locations in Iowa and Missouri, we have to pay sales tax for online purchases in those two states.”

Although the majority of Raygun sales come from within stores, Draper says most online customers are shopping from out of state and will pick up the sales tax.

“Of the 25 percent of online sales, 75 percent of that comes from outside the two states were we have locations. Some of our biggest non-Iowa states are California, New York, but then Illinois is a big one, Minnesota,” Draper said. Many of Raygun’s customers are in the United States, Canada and the United Kingdom, he added.

U.S. consumers do nearly 10 percent of their shopping online, USA Today reports.

Draper supports the court’s ruling.

“It’s not a big burden for business, but I think Iowa has been insane to not charge sales tax for online sales to out-of-state customers,” he said. “It is literally baffling to me that we don’t — considering, legally, you are supposed to file an addendum to your tax return that says, ‘I bought $1,000 worth of stuff from these online retailers, and here is the sales tax I owe.’

“The law currently is everyone is supposed to pay sales tax; we’re just not currently collecting it.”

“It’s nice knowing that there is a level playing field and that everybody is playing by the same rules,” Draper said. “In Kansas City, if a rival T-shirt company was set up on the Kansas side, they could sell to our customers on the Missouri side at essentially an 8.25 percent discount, because they don’t have to pay sales tax. It’s a significant amount of money.”