States see the $13 billion potential tax revenue figure from 2017.
Online retailers Wayfair Inc., Overstock.com Inc. and Newegg Inc. are opposing South Dakota.
The case will also affect Amazon.com. When selling its own inventory, Amazon charges sales tax in every state required.
The court will likely hear arguments in April 2018 with a ruling by the end of its nine-month term in late June 2018.