CrimeApr 22, 2026
New Mexico Couple Pleads Guilty to Selling Fake Native American JewelryThe pair falsely claimed their jewelry was made by Navajo artists, but it was imported from Vietnam.
Policies & IssuesApr 18, 2018
Supreme Court Divided on Issue of Online Sales Tax
Some justices say the current structure for collecting sales tax for items bought online needs to be updated while others argue it’s an issue for the legislative branch.
The U.S. Supreme Court hear arguments Tuesday on South Dakota’s petition to overturn Quill, the decision made in the era of mail-order catalogs that governs how online sales tax is collected today.
Washington--The U.S. Supreme Court heard arguments Tuesday morning in the case that could, or could not, change Quill, the decades-old decision governing collection of sales tax online.
The case, South Dakota vs. Wayfair Inc. et al, pits proponents of online sales tax collection, including states and retail organizations like Jewelers of America and the National Retail Federation, against online sellers like Jewelry Television, Etsy and eBay.
At issue is Quill vs. North Dakota, the 1992 Supreme Court ruling that prevents states from collecting sales tax from sellers with no physical presence, meaning a store, a warehouse, etc., in the state.
Heading into oral arguments, two justices who often find themselves on opposite sides of an issue—Justices Anthony Kennedy and Neil Gorsuch—had publicly expressed support for overturning Quill, a decision that Gorsuch described Tuesday as “antiquated.”
Justice Ruth Bader Ginsburg indicated during oral arguments that she agreed with Kennedy and Gorsuch, stating that those opposed to overturning Quill make the case that asking an out-of-state seller to collect tax on goods shipped in-state discriminates against interstate commerce.
“But as I see it,” she said, “why isn’t it, far from discriminating, equalizing sellers; that is, anyone who wants to sell in-state, whether an in-state shop, an out-of-state shop, everybody is treated to the same tax collection obligation. All who exploit an in-state market are subject to the in-state tax. Why isn’t that equalizing rather than discriminating?”
However, Justices Sonya Sotomayor, Samuel Alito and Elena Kagan seemed to agree that while Quill is outdated, the issues of governing sales tax collection is best left to Congress due to the complexities involved.
“From this court’s perspective, the choice is just binary. It’s you either have the Quill rule or you don’t,” Kagan said. “But Congress is capable of crafting compromises and trying to figure out how to balance the wide range of interests involved here.
“Now, the general (South Dakota Attorney General Marty Jackley, who spoke on behalf of the state in front of the court) said Congress hasn’t done that, but … Congress can decide when it wants to craft a compromise and when it doesn’t want to craft a compromise. And then Congress, if it decides it wants to craft a compromise, can craft a compromise in ways that we cannot.”
Justice Stephen Breyer mentioned that placing the administrative burdens of having to collect sales tax in every state could hinder smaller online sellers from entering the
Editors' Picks
Sponsored by
market, thereby creating an oligopoly of a handful large players.
And Chief Justice Roberts indicated that the time to overturn Quill has come and gone.
“In terms of economic impact, I mean, the suggestion in some of the briefs is that this is a problem that has peaked in the sense that the bigger e-commerce companies find themselves with physical presence in all 50 states. So they’re already covered.”
This includes the biggest online retailer in the country, Amazon, which announced last March that it would begin collecting sales tax in all 50 states.
“And,” Roberts continued, “the workarounds that some of the states have employed are also bringing more in. If it is, in fact, a problem that is diminishing rather than expanding, why doesn’t that suggest that there are greater significance to the arguments that we should leave Quill in place?”
The issue of online sales tax collection ended up before the Supreme Court because of a law South Dakota passed in March 2016 requiring companies that make more than $100,000 in sales or have more than 200 transactions per calendar year remit sales tax whether or not they have a physical presence in South Dakota.
Three online retailers, Overstock.com Inc., Wayfair Inc. and NewEgg Inc., filed a lawsuit against the state and ultimately won, with the South Dakota Supreme Court ruling that the U.S. Supreme Court’s 1992 Quill decision, however dated, remains the controlling precedent on the issue of interstate tax collection.
South Dakota petitioned the Supreme Court to reconsider Quill in October 2017. In January, the court agreed to do so.
A complete transcript of Tuesday’s oral arguments in South Dakota vs. Wayfair Inc. et al is available on the Supreme Court’s website.
A decision in the case is expected before the court’s current term ends in late June.
And Chief Justice Roberts indicated that the time to overturn Quill has come and gone.
“In terms of economic impact, I mean, the suggestion in some of the briefs is that this is a problem that has peaked in the sense that the bigger e-commerce companies find themselves with physical presence in all 50 states. So they’re already covered.”
This includes the biggest online retailer in the country, Amazon, which announced last March that it would begin collecting sales tax in all 50 states.
“And,” Roberts continued, “the workarounds that some of the states have employed are also bringing more in. If it is, in fact, a problem that is diminishing rather than expanding, why doesn’t that suggest that there are greater significance to the arguments that we should leave Quill in place?”
The issue of online sales tax collection ended up before the Supreme Court because of a law South Dakota passed in March 2016 requiring companies that make more than $100,000 in sales or have more than 200 transactions per calendar year remit sales tax whether or not they have a physical presence in South Dakota.
Three online retailers, Overstock.com Inc., Wayfair Inc. and NewEgg Inc., filed a lawsuit against the state and ultimately won, with the South Dakota Supreme Court ruling that the U.S. Supreme Court’s 1992 Quill decision, however dated, remains the controlling precedent on the issue of interstate tax collection.
South Dakota petitioned the Supreme Court to reconsider Quill in October 2017. In January, the court agreed to do so.
A complete transcript of Tuesday’s oral arguments in South Dakota vs. Wayfair Inc. et al is available on the Supreme Court’s website.
A decision in the case is expected before the court’s current term ends in late June.
More on Policies & Issues
The Latest
AuctionsApr 22, 2026
Roberta Flack’s Jewelry Is Going Up for AuctionJulien’s Auctions is selling the musician’s fine and fashion jewelry alongside her clothing, gold records, and other memorabilia.
CollectionsApr 22, 2026
British Museum Curator Pens Book on ‘The Tudor Heart’Rachel King’s book dives into the history of the pendant believed to have belonged to Henry VIII and his first wife, Katherine of Aragon.
Brought to you by
Discover Timeless Treasures: A Showcase of Antique Jewelry & Timepieces in Las VegasGain access to the most exclusive and coveted antique pieces from trusted dealers during Las Vegas Jewelry Week.
Events & AwardsApr 22, 2026
Here’s What Sy Kessler Has on Tap for Las Vegas The company will have deals on precious metals testers as well as the latest in lab-grown diamond detection technology and security.
Weekly QuizApr 16, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
WatchesApr 21, 2026
Coco Chanel Enters the Game with New Watch CollectionGabrielle “Coco” Chanel is a character in the “Coco Game” collection of watches and the queen in its first haute horlogerie chessboard.
IndependentsApr 21, 2026
Meet Jewelers of America’s 2026 ‘20 Under 40’ ClassThe annual list honors rising professionals on the retail and supply sides of the jewelry industry.
Brought to you by
Las Vegas Antique Jewelry & Watch Show: Showcasing the Most Collectible Merchandise from Across the GlobeGain access to the most exclusive and coveted antique pieces from trusted dealers during Las Vegas Jewelry Week.
CrimeApr 21, 2026
Customs Nabs 1,500 Pieces of Counterfeit Jewelry Bound for NYCSeized in Kentucky, the packages include fake Cartier, Tiffany & Co., Chanel, and Fendi jewelry.
CrimeApr 20, 2026
Queens Man Convicted in Bludgeoning Death of Pawn Shop OwnerRodolfo Lopez-Portillo faces 25 years to life in prison after being found guilty in the March 2022 beating death of Arasb Shoughi.
TrendsApr 20, 2026
Beth Bernstein, Sonia Esther Soltani Pen New Jewelry Book“Jewelry Creators: Dynamic Duos and Generational Gems” highlights the relationships among 22 influential designers, brands, and gem dealers.
Events & AwardsApr 20, 2026
Atlanta Jewelry Show’s Spring Event Is Hitting the RoadThe AJS Spring 2027 show will be held in Savannah, Georgia, with future shows taking place in other Southeast cities.
MajorsApr 20, 2026
Kendra Scott Names New CFO, Chief Business OfficerThe jewelry retailer plans to open 20 new stores this year and expand into new product categories.
TrendsApr 17, 2026
New (Groundbreaking) Floral Jewelry for Spring 2026Flower motifs are the jewelry trend blooming amongst the new collections that debuted this spring.
MajorsApr 17, 2026
QVC Group Files for Chapter 11 BankruptcyThe retailer reported an 8 percent decline in annual sales as it struggles under the weight of billions of dollars of debt.
CollectionsApr 17, 2026
Edina Kiss’ Earrings Are the Devil on Your ShoulderThe “Devil” drop earrings, our Piece of the Week, are part of designer Edina Kiss’ new namesake jewelry line that she will show at Couture.
CrimeApr 17, 2026
FBI Issues Warning to Refineries, Retailers Due to High Price of GoldThe alert states that burglary crews are targeting jewelry businesses and details how jewelers and refineries can protect themselves.
WatchesApr 16, 2026
Cartier Brings Back the RoadsterThe “watchmaker of shapes” debuted the reworked version of the vintage sports car-inspired timepiece at Watches & Wonders.
IndependentsApr 16, 2026
Edge Retail Academy Updates Leadership TeamAs demand for jewelry retail coaching grows, the company has established a dedicated business coaching leadership team.
MajorsApr 16, 2026
Stuller’s Latest Mountings Catalog Is Out NowThe “Mountings 2026-2027” catalog showcases Stuller’s largest and most diverse assortment to date with more than 400 new mounting styles.
PodcastsApr 15, 2026
Episode 4: The Natural Diamond DilemmaSally Morrison and Mark Klein discuss De Beers’ first beacon in 16 years and the mistake the industry made with lab-grown diamonds.
MajorsApr 15, 2026
Spark Creations’ Randy McKenzie Dies at 72 McKenzie spent 45 years with Spark Creations and is remembered for being kind, dedicated, and hardworking.
WatchesApr 15, 2026
These Are the New Rolex Watches for 2026Rolex focused exclusively on the Oyster Perpetual this year, as the model is celebrating its 100th anniversary.
FinancialsApr 15, 2026
Kering’s Jewelry Shines in Q1, Gucci’s Struggle ContinuesThe luxury giant discussed the Middle East conflict and its transformation plans, hinting at a stronger jewelry presence in North America.
SourcingApr 15, 2026
Diamond Club West Coast Names 2026 BoardKalpesh Jhaveri was re-elected as president for a third year.
TechnologyApr 15, 2026
This Jewelry Brand’s Video Series Is Up for a Webby Award“Diamond Divas,” a social media reality series by Shahla Karimi Jewelry, is nominated in the “Best Social: Fashion & Beauty” category.
SourcingApr 14, 2026
De Beers Expands ‘Desert Diamonds’ Beacon Into BridalThe campaign seeks to reignite desire for natural diamond engagement rings by highlighting the “distinct character” of warm-toned diamonds.
