Policies & Issues

From Capitol Hill, An Update on Sales Tax ‘Fairness’

Policies & IssuesJun 22, 2016

From Capitol Hill, An Update on Sales Tax ‘Fairness’

The issue continues to gain momentum on both sides of the aisle while resistance is waning, those who just visited the Hill say.


Washington, D.C.—The Jewelers of America Political Action Committee led a delegation of jewelers to D.C. last week for the sixth consecutive year, and returned with an update on the issue known as sales tax fairness.

For years, the jewelry industry, backed by JA, has been pushing Congress to pass legislation requiring e-tailers to collect sales tax on all transactions. Retailers, particularly jewelers, have argued for years that the fact that online sellers don’t have to collect sales tax in all 50 states puts brick-and-mortar businesses at a competitive disadvantage, as many consumers choose to buy online to save themselves money.

Two bills currently are circulating in Congress addressing the issue.

In the U.S. Senate, it’s the Marketplace Fairness Act (MFA), which was introduced in March 2015 by a group of four senators, two Democrat and two Republican. The MFA, which is nearly identical to legislation that made it through the Senate in 2013, is currently with the Senate finance committee.

In the U.S. House of Representatives, it’s the Remote Transactions Parity Act (RTPA), introduced in June 2015 by a bipartisan group of lawmakers led by Rep. Jason Chaffetz (R-Utah).

While sales tax legislation has hit hurdles in the House in the past, momentum continues to build while resistance to the legislation seems to be waning.

Susan Posnock, JA’s director of public affairs and education, said the bill currently has about 65 sponsors, about half Democrat and half Republican. It is with the House Judiciary Committee, headed by Rep. Bob Goodlatte (R-Va.).

While it seems unlikely the bill will make it out of committee in this very contentious, and very unusual, election year, JA has high hopes for 2017 and beyond.

“I think it’s inevitable that it’s going to pass,” said Posnock, who’s been monitoring the issue for years. “It’s not if; it’s when. It has the support. It’s just a matter of the right timing and the right pressure.”

She said that JA will really be looking to push the issue in the fall, after the noise generated by the presidential election quiets down.

Posnock said the hope is that the Senate version of the legislation, the MFA, will pass in the lame-duck session following the election, and that the House version, the RTPA, will pass after the new administration is ushered in in 2017.

If this is the case, she noted that the Senate--which passed a sales tax fairness
bill once already--will have to pass another version of the bill in the next Congress.

Both the House and the Senate will then have to reconcile the differences between their two bills and send it to the president for his, or her, signature.

Chris Fetzer of Haake Fetzer, the firm that leads JAPAC and JA legislative advocacy efforts in Washington, added that JA plans to continue to engage lawmakers in both chambers leading up to the November elections, in anticipation of the Senate’s floor consideration of the MFA during the lame-duck session.

He said that Senate passage of the MFA would increase pressure on the House to “afford sales tax fairness legislation long overdue consideration late this year as part of a larger legislative vehicle, and at a minimum, would position the broad coalition of industry and Congressional supporters to make passage of sales tax fairness legislation a Congressional priority in the next Congress.”

During their visit to Washington, members of the JAPAC delegation met with key supporters of legislation they say would level the playing field between online and brick-and-mortar businesses, including Reps. Steve Stivers (R-Ohio), Mia Love (R-Utah), and Ted Poe (R-Texas), all cosponsors of the RTPA, and, on the Senate side, Sen. Richard Burr (R-N.C.), who voted in favor of the measure when it passed in 2013.

They also talked with lawmakers about the Federal Trade Commission’s proposed changes to the Guides for the Jewelry, Precious Metals, and Pewter Industries, emphasizing JA’s opposition to the use of the word “cultured” when describing lab-grown diamonds.

JA said that lawmakers, particularly Stivers, “expressed interest” in supporting the association’s position.

During the two days they spent in Washington, the JAPAC delegation also met with other members of Congress, including Senate Majority Leader Mitch McConnell (R-Ky.), Rep. Pete Sessions (R-Texas), chairman of the House Rules Committee, and Rep. Michael Burgess (R-Texas), chairman of the Energy & Commerce Subcommittee with jurisdiction over the cultured diamond issue.

The JA members on the trip were:
Brian Alter, Alter’s Gem Jewelry, Beaumont, Texas (JA member);
Jon Bridge, Ben Bridge Jeweler, Seattle (JAPAC Board);
Jenny Caro, Jewelry by Designs, Woodbridge, Va. (JAPAC board chair, JA board);
Jeff and Jim Corey, Day’s Jewelers; Waterville, Maine (JAPAC board vice chair);
Ronda Daily, Bremer’s Jewelry; Peoria, Ill. (JA member);
Bill Farmer Jr., Farmer’s Jewelers; Lexington, Ky. (JAPAC board, JA board immediate past chairman);
Michael and Eva Greene, Wick & Greene, Asheville, N.C. (JA members); and
Brian Mann, David Mann Jewelers, Potomac, Md. (JA board).

Also in attendance were JA President and CEO David J. Bonaparte, Posnock, JA Executive Administration Manager Sharie Fogarty and Ret. U.S. Army Major Gen. Tim Haake and Fetzer of Haake Fetzer.
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

Set of four Patek Philippe “Star Caliber 2000” pocket watches
AuctionsSep 17, 2025
Mythical Set of Patek Philippe Pocket Watches Expected to Sell for $10M+

A set of four Patek Philippe “Star Caliber 2000” pocket watches is part of Sotheby’s upcoming auction in Abu Dhabi.

Journey of a Jeweler by Silvia Furmanovich
TrendsSep 17, 2025
Silvia Furmanovich’s Book Tells the ‘Journey of a Jeweler’

The Brazilian jeweler’s latest book marks her namesake brand’s 25th anniversary and tells the tale of her worldwide collaborations.

1978 Rolex Submariner Ref. 1680 Tiffany Dial
WatchesSep 17, 2025
Bob’s Watches Acquires Vintage Rolex Won on ‘The Price is Right’

The Submariner Ref. 1680 with a Tiffany & Co. dial came from the original owner, who won it as a prize on the game show in the 1970s.

reDollar-fine-jewelry-department.jpg
Brought to you by
reDollar.com Is Rolling Out the Next Level Jewelry, Diamond & Watch Consignment Program

With their unmatched services and low fees, reDollar.com is challenging some big names in the online consignment world.

Jewelers Mutual Group logo
TechnologySep 17, 2025
Jewelers Mutual Launches Shipping Solution App for Shopify

The new integration allows users to manage shipments directly from the Shopify dashboard.

Weekly QuizSep 12, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Shot of one of the pools at the Omni La Costa Resort & Spa in Carlsbad, California
EditorsSep 16, 2025
Out & About: 7 Great Quotes From Converge in Carlsbad

At Converge 2025, Editor-in-Chief Michelle Graff attended sessions on DEI, tariffs, security, and more. Here are her top takeaways.

Crime police cars
CrimeSep 16, 2025
2 Robbery Suspects Killed in California Pawn Shop Shootout

Six people were shot last week at an Oakland cash-for-gold shop as employees exchanged gunfire with individuals trying to rob the store.

japac-btyb.png
Brought to you by
Rallying Call for the Jewelry Industry on Tariffs and Other Key Issues

Jewelers of America is leading the charge to protect the industry amidst rising economic threats.

Chopard Ice Cube Modular Necklace
CollectionsSep 16, 2025
Chopard Adds New Designs to Its ‘Ice Cube’ Capsule Collection

The jeweler has expanded its high jewelry offering, which launched last year, with new pieces featuring its cube motif that debuted in 1999.

Natural Diamond Council Retailer Accreditation Program seal
SourcingSep 16, 2025
Natural Diamond Council Launches Retailer Accreditation Program

Ben Bridge Jeweler and Lux Bond & Green were a part of the pilot program. 

Kristen Bell, Angela Bassett, Lisa Manobal
EditorsSep 15, 2025
Skipping the Necklace, Embracing Snakes: The Best Jewelry From the 2025 Emmy Awards

Associate Editor Natalie Francisco shares eight of her favorite jewelry looks from the 77th annual Primetime Emmy Awards, held Sunday night.

Holiday presents in gift boxes
SurveysSep 15, 2025
Resilient Shoppers to Boost Holiday Retail Sales, Says Deloitte

It’s predicting a rise in retail sales this holiday season despite economic uncertainty and elevated inflation.

Buffalo Emerald
SourcingSep 15, 2025
Gemfields Achieves $32M at High-Quality Emerald Auction

It included the sale of the 11,685-carat “Imboo” emerald that was recently discovered at Kagem.

8.33-carat emerald-cut no-oil Brazilian emerald, A. Kleiman & Co.
SourcingSep 15, 2025
AGTA Elects 8 Members to Board of Directors

The newly elected directors will officially take office in February 2026 and will be introduced at the organization’s membership meeting.

Rough montana sapphire
EditorsSep 12, 2025
Out & About: Mining Sapphires in Rock Creek, Montana

Associate Editor Lauren McLemore headed out West for a visit to Potentate Mining’s operation hosted by gemstone wholesaler Parlé Gems.

Arunashi Fordite and Rhodolite Earrings
TrendsSep 12, 2025
Piece of the Week: Arunashi’s Fordite and Rhodolite Earrings

Fordite is a man-made material created from the layers of dried enamel paint that dripped onto the floors of automotive factories.

Susan Jacques and Al Gilbertson
Events & AwardsSep 12, 2025
Al Gilbertson Wins 2025 Robert M. Shipley Award

Gilbertson has worked as a researcher, jeweler, lapidary artist, appraiser, and business owner throughout his decades in the industry.

Tabayer’s Nordstrom Shop-in-Shop
MajorsSep 11, 2025
Tabayer Opens Nordstrom Shop-In-Shop

Located in the revamped jewelry hall at the retailer’s New York City flagship, this opening is Tabayer’s first shop-in-shop.

De Beers education app on mobile phone
SourcingSep 11, 2025
Need to Sell More Natural Diamonds? De Beers Has an App for That

The new, free app offers accessible educational content, like games and podcasts, for U.S. retailers.

Gold jewelry on a scale
MajorsSep 10, 2025
Stuller to Swap Gold Scrap for Full Credit to Account

As the gold price rises, the manufacturer is offering a 100 percent payout through Sept. 30 for gold clean scrap.

Jacob and Co Loewe headphones
SourcingSep 10, 2025
Tech Meets Style in the New Loewe x Jacob & Co. Headphones

Jacob & Co. partnered with the German technology company on two pairs of headphones, one set with diamonds and the other with sapphires.

Tiffany & Co Favrile Beetle Necklace in Frankenstein
TrendsSep 10, 2025
Tiffany & Co. Archival Jewels Bring Life to ‘Frankenstein’

Guillermo del Toro’s 2025 “Frankenstein” will feature 27 jewels and objects from the storied brand, including pieces from its archives.

24 Karat Club banquet
MajorsSep 10, 2025
24 Karat Club of New York’s Banquet to Return to Waldorf Astoria

The Waldorf Astoria New York’s grand reopening this past summer means a homecoming for the industry group’s annual event.

Anglo American’s Quellaveco copper mine in Peru
SourcingSep 09, 2025
Anglo American to Merge With Canadian Copper Miner

Anglo plans to merge with Teck Resources Ltd. to form Anglo Teck. The deal changes nothing about its plans to offload De Beers.

The Mellon Blue diamond
AuctionsSep 09, 2025
‘The Mellon Blue’ to Return to Auction, This Time at Christie’s

The 9.51-carat fancy vivid blue diamond, which set two world auction records at Sotheby’s in 2014, is estimated to fetch up to $30 million.

Dianne Batista Phillips Auctions
AuctionsSep 09, 2025
Phillips Names Dianne Batista Head of Jewels, New York

The industry veteran joins the auction house as it looks to solidify its footprint in the jewelry market.

Anastacia Lauren, Elle Jerge, Logan Nye
MajorsSep 09, 2025
MJSA Education Foundation Announces 2025 Scholarship Winners

The nonprofit awarded four students pursuing a professional career in jewelry making and design with $2,250 each.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy