The U.S. Supreme Court ruled Thursday that states can require businesses to collect sales taxes for online purchases even if those companies do not have a physical presence in the state—a ruling welcomed by a wide range of associations representing brick-and-mortar stores.

Justices voted 5-4 to overturn a 23-year Supreme Court ruling prohibiting the collection of sales taxes from out-of-state businesses. North Dakota had sought to overturn the earlier decision so it could collect sales taxes from online businesses outside its borders. Elected leaders in most states have long argued the ruling was woefully out of date in an age of e-commerce.

Retail groups have been among the most vocal supporters for allowing states to collect sales taxes for online purchases. They said the old system discriminated against brick-and-mortar stores by requiring them to collect taxes and therefore putting them at a competitive disadvantage with online outlets.

"Today's decision culminates years of tireless work by the retail community to reverse a pre-internet era rule that distorts free markets and puts local brick and mortar stores at a competitive disadvantage with their online-only counterparts," said Deborah White, general counsel for the Retail Industry Leaders Association.

National Retail Federation Matthew Shay said the ruling "clears the way for a fair and level playing field where all retailers compete under the same sales tax rules whether they sell merchandise online, in-store or both."

NRF and 20 other associations presenting brick-and-mortar businesses filed a friend of the court brief in March asking justices to side with North Dakota. The lawsuit also had the support of the National Association of Realtors, whose members sell property to those same businesses.

"Ultimately, this is an issue of fairness," NAR President Elizabeth Mendenhall said. "Regardless of how Americans shop for goods, whether that's on the internet or in our neighborhood small businesses, we must expect that all retailers face equal sales tax treatment."

How the ruling will affect consumers remains to be seen. Many of the largest online sellers—such as Amazon—already collect sales taxes. Notably absent from the groups responding to the decision was the Internet Association, which represents online retailers Amazon, Ebay and Etsy.

One group disappointed with the ruling was NetChoice, an association representing e-commerce businesses, which called it a blow to consumers and small online businesses.

"Small web businesses will be hardest hit particularly those with only a single location, because they can't afford the overhead to comply with thousands of different tax rules across the country," said Chris Cox, NetChoice outside counsel. "Consumers will quickly feel the negative effects as those businesses dry up or are forced into the arms of internet giants."

MORE CEO DATELINE

• Associations wary of decision to reverse child-separation policy
• Insurance industry associations explore merger
• NAM, Chamber, health-care groups rip Trump immigration policy
• Scientists required to get approval to present research at association meetings
• Business groups blast tariffs on Chinese goods