CollectionsDec 05, 2025
Piece of the Week: Robinson Pelham’s ‘Tsar Star’ EarringsThe new pink sapphire version of the piece dances with its wearer in the brand’s “Icons After Dark” holiday campaign.
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.
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.
“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.
More on Policies & Issues
The Latest
TrendsDec 05, 2025
Pantone’s Color of the Year for 2026 Is … WhiteA choice that’s generated a lot of commentary, Pantone says “Cloud Dancer” marks a fresh start and encourages relaxation and creativity.
MajorsDec 05, 2025
Stuller Releases ‘Wrapped in Wonder’ CampaignThe manufacturer’s holiday campaign features a gift guide filled with trending designs and jewelry that can be personalized.
Brought to you by
Impacting Tomorrow TodayHow Jewelers of America’s 20 Under 40 are leading to ensure a brighter future for the jewelry industry.
CrimeDec 04, 2025
Man Arrested After Allegedly Swallowing Fabergé Egg PendantThe man was charged with theft, accused of ingesting the necklace while in a jewelry store in Auckland, New Zealand.
Weekly QuizDec 04, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
IndependentsDec 04, 2025
Step Inside JR Dunn Jewelers’ Giant New Store The Florida independent expanded its store from 8,000 to 14,000 square feet, fulfilling the vision of its late co-founder, Jim Dunn.
Supplier BulletinDec 04, 2025
Introducing Shop Natural Day: A New Movement Celebrating Natural DiamondsSponsored by De Beers Group
Brought to you by
Roseco Releases New Full-Line CatalogRoseco’s 704-page catalog showcases new lab-grown diamonds, findings, tools & more—available in print or interactive digital editions.
WatchesDec 04, 2025
Casio Shrinks its G-Shock WatchThe classic 5600 series G-Shock has been scaled down to about a tenth of its size, becoming a fully functioning watch ring.
Events & AwardsDec 04, 2025
AGA Announces 2026 Tucson Speaker LineupThe association’s annual conference and gala will take place Feb. 4, 2026, during the Tucson gem shows.
Events & AwardsDec 04, 2025
CBG Announces Speaker Lineup for 2026 Miami Event The January show will include a workshop for jewelry retailers on implementing AI to strengthen their businesses.
TrendsDec 03, 2025
Miley Cyrus Debuts Edgy Engagement RingFellow musician Maxx Morando proposed to the star with a chunky, cushion-cut diamond ring designed by Jacquie Aiche.
SurveysDec 03, 2025
A Record 202.9M Shoppers Turned Out Thanksgiving WeekendBlack Friday is still the most popular shopping day over the five-day holiday weekend, as per the National Retail Federation’s survey.
AuctionsDec 03, 2025
Fabergé’s 'The Winter Egg' Achieves Record $30MThe historic egg, crafted for Russia's ruling family prior to the revolution, was the star of Christie’s recent auction of works by Fabergé.
FinancialsDec 02, 2025
Signet Jewelers’ Q3 Sales Up Amid Continued Focus on Lower Price PointsThe retailer offered more fashion jewelry priced under $1,000, including lab-grown diamond and men’s jewelry.
CollectionsDec 02, 2025
Briony Raymond Introduces First FragranceThe eau de parfum is held in a fluted glass bottle that mirrors the decor of the brand’s atelier, and its cap is a nod to its “Sloan” ring.
SourcingDec 02, 2025
Petra Diamonds Elevates Interim CEOs to Permanent StatusVivek Gadodia and Juan Kemp, who’ve been serving as interim co-CEOs since February, will continue to lead the diamond mining company.
MajorsDec 02, 2025
Lee Krombholz Takes Over as Chair of MJSA Education FoundationIn addition, a slate of new officers and trustees were appointed to the board.
IndependentsDec 02, 2025
RJO Welcomes Its 1,200th Retail MemberWitt’s Jewelry in Wayne, Nebraska, is the organization’s new milestone member.
SourcingDec 02, 2025
Brendan Laurs Honored With 2025 Bonanno AwardLaurs is the editor-in-chief of Gem-A’s The Journal of Gemmology and an expert on the formation of colored gemstone deposits.
CrimeDec 01, 2025
Fourth Man Charged in Louvre Jewelry HeistThe man, who has a criminal history, is suspected of being the fourth member of the four-man crew that carried out the heist.
AuctionsDec 01, 2025
Christie’s Presents ‘Splendor & Style’ CollectionThe single-owner collection includes one of the largest offerings of Verdura jewels ever to appear at auction, said Christie’s.
IndependentsDec 01, 2025
Lustig Jewelers’ New Owner Is a Fellow Chicago JewelerMichael Helfer has taken the reins, bringing together two historic Chicago jewelry names.
MajorsDec 01, 2025
PGI Debuts Platinum-Filled Holiday Gift GuideThe guide features all-new platinum designs for the holiday season by brands like Harwell Godfrey, Ritani, and Suna.
FinancialsNov 26, 2025
Movado CEO Talks Tariffs, Growing Interest in Accessible Luxury WatchesDuring its Q3 call, CEO Efraim Grinberg discussed the deal to lower tariffs on Swiss-made watches, watch market trends, and more.
TrendsNov 26, 2025
Piece of the Week: Rosior’s Pumpkin RingRosior’s high jewelry cocktail ring with orange sapphires and green diamonds is the perfect Thanksgiving accessory.
IndependentsNov 26, 2025
Greenwich St. Jewelers Launches Colorful Holiday CampaignThe “Embrace Your True Colors” campaign features jewels with a vibrant color palette and poetry by Grammy-nominated artist Aja Monet.
