The U.S. Supreme Court is now deliberating whether it should amend or overrule its Quill opinion. That 1992 decision holds that Congress has the constitutional authority to regulate commerce among the states. And absent congressional action, states can't force businesses with no physical presence in the state to collect state sales taxes.
South Dakota went before the U.S. Supreme Court last week to argue that Quill is outdated, in light of changes in commerce since 1992. Attorney General Marty Jackley argued that small businesses within South Dakota's borders are facing unfair competition from online vendors.
But Wayfair says the nature of small and mid-sized businesses has also evolved since Quill, and the marketplace is organically righting itself. Wayfair's attorney, George Isaacson, says if Quill is overturned, small businesses that sell online will be priced out of competing.
The Supreme Court made the audio public last Friday. SDPB's Victoria Wicks summarizes these arguments.
To listen to oral arguments and follow along with the transcript, click on this link, and then click on the audio symbol at the left side of the page: