Policies & Issues

Supreme Court Agrees to Hear Online Sales Tax Case

Policies & IssuesJan 17, 2018

Supreme Court Agrees to Hear Online Sales Tax Case

The high court has agreed to take up a petition to reconsider Quill, the 1992 ruling that governs how internet sales tax is collected today.

2017_Supreme-Court.jpg
The U.S. Supreme Court agreed Friday to hear South Dakota v. Wayfair Inc., which requires it to revisit the 1992 decision that currently governs the collection of sales tax for merchandise sold online.

Washington--The U.S. Supreme Court has agreed to take up a petition to reconsider Quill, the 1992 ruling that governs how taxes from online sales are collected today.

The justices announced their decision to take up the case of internet sales tax on Friday, the SCOTUS blog shows.

Officially filed as South Dakota v. Wayfair Inc., the case for internet sales tax “fairness,” as it is known among proponents, made its way to the highest court in the land via South Dakota.

In 2016, legislators in the Midwestern state passed a law requiring companies that make more than $100,000 in sales or have more than 200 transactions per calendar year remit sales tax, whether they have a physical presence in South Dakota or not.

Legislators argued the state is missing out on millions in revenue from online sales and that it’s time to revisit Quill, the nearly-26-year-old decision that prohibits states from imposing sales tax requirements on vendors with no physical presence there.

Online retailers NewEgg, Wayfair and Overstock.com challenged the law in the state’s Supreme Court and won, with the court stating in its decision, “However persuasive the state’s arguments on the merits of revisiting the issue, Quill has not been overruled. Quill remains the controlling precedent on the issue of Commerce Clause limitations on interstate collection of sales and use taxes.”

In October, South Dakota Attorney General Marty J. Jackley petitioned the U.S. Supreme Court to take up the case, which it agreed to Friday.

The court is expected to hear oral arguments in April, with a decision expected by late June.

The lack of sales tax collection on online purchases is an important issue for brick-and-mortar retailers, particularly those who depend on high-dollar sales like jewelers.

Jewelers of America has been fighting on behalf of its members for changes to the legislation governing online sales tax collection for a decade and was one of 10 retail trade associations that filed an amicus brief with the Supreme Court in support of South Dakota’s petition.

JA President and CEO David J. Bonaparte called Friday’s decision a “major milestone” in the association’s long-standing fight to “level the playing field” between online and brick-and-mortar retailers.

“Now that the court has agreed to hear the case, we are optimistic that it will recognize that Quill does not reflect the retail landscape that exists today,” he said.

But Overstock.com, the only retailer of the three involved in the case that sells jewelry, sees it differently.

In a statement issued Friday, the online retailer said it is confident the high court will uphold Quill.

“States do not have the power to conscript individuals or organizations that do not have a physical presence within their state to do the state’s job of collecting sales tax,” said Jonathan Johnson, a member of Overstock.com’s board of directors. “It’s a straightforward notion. And disregard for the precedent would have severe consequences for businesses and individuals.”

He added that even if the Supreme Court decides to overturn Quill, Congress would still need to intercede in order to change federal law.

While that is true, Chris Fetzer of Haake Fetzer, the firm that lobbies on behalf of JA in Washington, said what can be expected if the Supreme Court rules to overturn Quill is states that have not already done so will move to pass laws to require retailers to collect and remit sales and use taxes, regardless of whether or not they have a physical presence in the state.

“Quill,” he observed, “would no longer be the law of the land.”

Congressional action wouldn’t be necessary in that case, but Congress would still have a role because only it can pass a federal framework for sales and use tax collection. Otherwise, Fetzer said, retailers would be required to adhere to a patchwork framework on a state-by-state basis of potentially disparate laws.

It is also worth noting that Rep. Bob Goodlatte (R-Va.), chairman of the House Judiciary Committee and a longtime opponent of online sales tax legislation, announced in November that he will not seek re-election, and so he will not be in Congress anymore come January 2019.
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

An interior shot of the Musee Lalique in Wingen-sur-Moder, France
CrimeAug 06, 2026
Lalique Museum to Remain Closed Following $5M Heist

Museum officials are looking to the public to help cover the “exceptional” costs involved in recovering from the July 5 smash-and-grab.

1872-x-1052-July-ad (2).png
Supplier BulletinAug 06, 2026
Why More Jewelry Retailers Are Hosting Turnkey Estate Buying Events

Sponsored by Stratus Estate Buyers

Claire’s new piercing experience
MajorsAug 06, 2026
Claire’s Revamps Piercing Services for Second Time in Three Years

The overhaul includes enhanced employee safety training and trendy earring styles, including lab-grown diamond studs.

1872-x-1052-July-ad (1).png
Brought to you by
Why More Jewelry Retailers Are Hosting Turnkey Estate Buying Events

Retailers are seeking new ways to attract customers, increase traffic, and create revenue – Estate buying events are a popular solution.

Brilliant Earth Jane Goodall collection rings
FinancialsAug 06, 2026
Brilliant Earth’s Q2 Sales Up 6%, Driven by High-Income Shoppers

The retailer said it had its biggest Mother’s Day ever, with strong demand for higher-priced jewelry.

Weekly QuizJul 30, 2026
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Handwork: Handcrafted Objects that Made America Book Cover
TrendsAug 06, 2026
New Book on Handcrafted American Objects Highlights Jewelry

“Handwork: Handcrafted Objects that Made America” features historic and contemporary works, including a Diné squash blossom necklace.

Ani Khachian
MajorsAug 06, 2026
AJA East Coast Names Ani Khachian as First Female President-Elect

The Armenian Jewelers Association’s East Coast chapter has also elected its 2026–2027 board of directors.

Brought-To-By-Article-Top-Image.jpg
Brought to you by
Wedding Band Trends 2026: Personalization Takes Center Stage

Colored gemstones, artisan finishes, mixed metals, and meaningful details are shaping demand in bridal jewelry.

JCPenney storefront
MajorsAug 05, 2026
Private Equity Firm Wants to Buy 100+ JCPenney Stores

Onyx Partners has submitted a second offer to buy the department stores after its first offer fell through last year.

The Roaring Jewel Martini
IndependentsAug 05, 2026
Atlanta Jeweler Introduces $10K Martini

Solomon Brothers Jewelers has partnered with local cocktail bar Roaring Social on a new martini garnished with a tennis necklace.

Benjamin Siegel of Hamilton Jewelers
IndependentsAug 05, 2026
Another Member of the Siegel Family Joins Hamilton Jewelers

Benjamin Siegel, son of President and CEO Hank Siegel, started working for the family business this week.

Bulgari San Diego Store Exterior
MajorsAug 05, 2026
Bulgari Opens Store in San Diego

The new space features a modern design that blends Bulgari’s Roman heritage with San Diego’s coastal spirit.

Mugshots of four men
CrimeAug 04, 2026
Crew of Thieves Break Into Indiana Jeweler’s Home

Four men were charged in connection with the break-in and accused of stealing $365,000 in cash, jewelry, and designer goods.

André Branch
MajorsAug 04, 2026
Pandora Hires Former Signet Board Member to Lead North American Market

André Branch has more than 25 years of experience with various brands, most recently serving as CEO of Ariana Grande’s cosmetics company.

Gemlok earrings
MajorsAug 04, 2026
Sasha Primak Acquires Gemlok

New York-based atelier Gemlok is best known for creating the innovative “bridge” setting that became popular in the bridal market.

Santana Now Unidad Collection Campaign Imagery
CollectionsAug 04, 2026
Musician Carlos Santana Launches Jewelry Brand

Santana Now's debut collection, “Unidad,” features symbolic motifs as well as pieces of wood from the Woodstock stage.

Stock image of a gavel and books
CrimeAug 03, 2026
Florida Man Gets 15 Years in Trio of Jewelry Store Robberies

The 50-year-old man pleaded guilty earlier this year to robbing two jewelry stores and a pawn shop of more than $700,000 in merchandise.

Spider-Man Citizen watch and pin on a web
WatchesAug 03, 2026
Citizen's New Spider-Man Watch Is a Collector’s Dream

The watch’s dial features an original design by Marvel comics illustrator Adam Kubert.

Chatham Men’s Collection Campaign Imagery
CollectionsAug 03, 2026
Chatham Releases First Men’s Collection

The new collection of lab-grown diamond and colored gemstone jewelry provides a “fresh perspective” on the category, Chatham said.

Pomellato Marvelous Griffe earrings
TrendsAug 03, 2026
Amanda’s Style File: Spinel vs. Peridot

While some August babies are team peridot, the month's time-honored birthstone, others are team spinel, the newer alternative.

Edina Kiss Popsicle Pendant and Karina Choudhrie Ice Cream Charm
TrendsJul 31, 2026
These Pieces of the Week Are Sweet

Edina Kiss’ “Popsicle” pendant and Karina Choudhrie’s “Ice Cream” charm satisfy that summer craving for a sweet piece of jewelry.

Macy’s Herald Square store sign
MajorsJul 31, 2026
Macy’s Iconic Red Shopping Bag Sign Torn Down

The massive billboard has been in the same spot on the department store’s Herald Square flagship store for decades.

Gemfields emeralds
SourcingJul 31, 2026
Gemfields’ H1 Revenue Jumps 72%

The miner’s ruby and emerald auctions brought in a combined $102.9 million.

Stock image of a polished diamond being held by tweezers
SourcingJul 30, 2026
De Beers Sale in ‘Final, Most Challenging’ Phase, Anglo CEO Says

The goal is for the De Beers sale to be finished by the second half of 2026, with the subsequent approvals process expected to take a year.

Hands pushing shopping cart
SurveysJul 30, 2026
Consumer Confidence Slips in July

Survey respondents were concerned about the rising prices of food and groceries as well as unemployment.

Paola De Luca Presents Trendvision Book
Events & AwardsJul 30, 2026
Vicenzaoro Releases 2026 Education Lineup

The trade show, slated for Sept. 4-8 in Vicenza, Italy, will feature sessions on trends, AI, gemology, and manufacturing.

Jewels by Grace Hillsborough Show
Events & AwardsJul 30, 2026
Hillsborough Show Moves to New Location for 2026

The public shopping event featuring art, jewelry, watches, and rare collectibles, will take place in Santa Clara, California, this fall.

×

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