<Li> States, local brick - and - mortar stores, and interstate commerce were being harmed by the decision from Quill . The state pointed to a 2012 study from National Conference of State Legislatures, performed through the University of Tennessee, that estimated that states lost US $23 billion in potential revenue from collecting of sales taxes from out - of - state vendors, with the losses only worsening with further increase in the use of online sales . The Government Accountability Office estimated this to be closer to US $13.7 billion in a 2017 audit . The state argued that the inability to collect sales taxes harms their ability to manage their government resources without raising other taxes, and in states wholly dependent on sales taxes for revenue (i.e. where there is no income tax) the effect becomes more pronounced . The state further stated that brick - and - mortar stores are discriminated against by Quill since online stores can offer the same products at lower effective prices, and doing interstate commerce for other venues is discouraged due to Quill . </Li> <Li> The "physical presence" aspect of the decision in Quill was flawed, particularly considering the four - pronged test for collection of interstate taxes defined previously in Complete Auto Transit, Inc. v. Brady 430 U.S. 274 (1977), as well as the new landscape of e-Commerce in 2017 compared to 1992 that make the stare decisis factors of the Quill decision no longer applicable . The nature of the Internet makes a state's economic nexus, a term defined in Complete Auto Transit to describe taxable activities of interest to the state, much broader than it was in 1992 . The state argued that while there may have been a burden for out - of - state vendors to determine the appropriate state and apply the correct sales tax in 1992, that in 2017 these processes are readily available and no longer a burden on vendors . </Li> <P> The National Retail Federation along with 40 other states joined in South Dakota's petition . The state was also supported by President Donald Trump's administration . The state was represented at oral arguments by its Attorney General Marty J. Jackley, and Deputy Solicitor General Malcolm L. Stewart . </P> <P> Wayfair, Overstock.com, and Newegg filed a petition to deny writ . The three argued that: </P>

South dakota petitioner v. wayfair inc. et al