TrendsOct 03, 2025
Selena Gomez, Benny Blanco Tie the Knot Wearing Diamonds, White MetalsGomez’s jewelry included Tiffany & Co. drop-style earrings while Blanco stacked diamonds from Jacob & Co. on his wrist.
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However, Justices Sonya Sotomayor, Samuel Alito and Elena Kagan seemed to agree that while Quill is outdated, the issues of governing sales tax collection is best left to Congress due to the complexities involved.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
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
GradingOct 03, 2025
Grading Lab HRD Antwerp Names New CEODiamond industry banking veteran Paul De Wachter will take on the role in January 2026.
TrendsOct 03, 2025
Piece of the Week: Kallati’s Pink Sapphire RingTaylor Swift flaunts an Elizabeth Taylor-esque gemstone in promo for her new album, “The Life of a Showgirl.”
CollectionsOct 02, 2025
Boucheron Debuts Cuffs Crafted With 3D-Printed SandIts “Quantre Sand” capsule was made using a 3D sand printing technique borrowed from the automotive and aeronautics industries.
Weekly QuizOct 02, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
CrimeOct 02, 2025
$1M in Jewelry Stolen in Northern California Smash and Grab Four individuals have been charged in the “takeover-style” robbery of Heller Jewelers last month, and additional charges are expected.
MajorsOct 02, 2025
Neil Lane Jewelry Exhibition Coming to Toledo Museum of Art“Radiance and Reverie” will showcase more than 150 jewels from Lane’s personal collection by Tiffany & Co., Cartier, and more.
Brought to you by
reDollar.com Is Rolling Out the Next Level Jewelry, Diamond & Watch Consignment ProgramWith their unmatched services and low fees, reDollar.com is challenging some big names in the online consignment world.
TrendsOct 02, 2025
Amanda’s Style File: October’s Colorful ShowThe month’s birthstones, tourmaline and opal, complement the palette of autumn.
ColumnistsOct 01, 2025
Peter Smith: Why Vendor Success Starts With Self-ReflectionSmith shares the importance of looking at your company with openness and honesty to identify opportunities you may be missing.
EditorsOct 01, 2025
Playing Favorites: The Best Jewelry From VicenzaoroAssociate Editor Natalie Francisco visited Italy to spot jewelry trends at the September Vicenzaoro show and share her top finds.
SurveysOct 01, 2025
Consumer Confidence Hits 5-Month Low in September Respondents were concerned about job availability and rising prices.
SourcingOct 01, 2025
Gemfields’ H1 Revenue Falls 47%Its latest interim financials revealed a challenging first half due in part to production troubles at its mines.
MajorsSep 30, 2025
Pandora CEO to Retire in 2026, Hand Reins to CMO Alexander Lacik has led Pandora since 2019. Berta de Pablos-Barbier will succeed him, the first woman to head the company.
CrimeSep 30, 2025
2 Suspects Charged in $300K Sleight-of-Hand Jewelry Store ScamTwo men allegedly used counterfeit bills to purchase luxury watches and jewelry from a North Carolina jeweler.
CollectionsSep 30, 2025
Billie Eilish, Finneas Partner with John HardyThe “Lovestruck” collection, designed with the Academy and Grammy award-winning siblings, is the brand’s first lab-grown diamond offering.
IndependentsSep 30, 2025
Spinelli Kilcollin Announces Residency in DallasThe brand, celebrating its 15th anniversary, has popped up at Market, a luxury fashion destination in Highland Park Village.
IndependentsSep 29, 2025
Nina Pugliese, Longtime Henne Jewelers Employee, Dies at 65She was remembered as a creative and generous woman of faith, who also had a sweet tooth.
TrendsSep 29, 2025
Amanda’s Style File: Ear FocusMove over neck mess, the ear story is the way to make a layering statement today.
IndependentsSep 29, 2025
Mark Henry Jewelry to Debut in CanadaThe New York-based brand is set to launch a limited-time offering for the holiday season at Holt Renfrew in Toronto.
MajorsSep 29, 2025
Overnight Releases New Bridal CatalogThe “Volume 7” bridal catalog features best-selling engagement rings, trending styles, and a new section highlighting anniversary bands.
SurveysSep 26, 2025
Online Shopping, Influencers to Drive Holiday Spending, Mastercard SaysHoliday sales growth is expected to slow as consumers grapple with inflation and tariff-related uncertainty.
Events & AwardsSep 26, 2025
Winners of Austin Jewelry Design Contest Announced Jamie Turner Designs is among the winners of the local “Austin Shines” contest, hosted by Eliza Page, a jewelry store in Austin, Texas.
TrendsSep 26, 2025
Piece of the Week: Kwit Jewelry’s Square Signet Pinky RingThe red and azure colorway is one of many fun enamel pairings offered, bringing whimsy to the classic style of a monogramed signet ring.
SourcingSep 25, 2025
2 African Countries Aim to Take Stake in De Beers Botswana’s president said his country wants a controlling share, while Angola envisions multiple countries holding minority stakes.
Lab-GrownSep 25, 2025
Kira Jewels Expands Lab-Grown Diamond ProductionThe manufacturer is adding 1,400 chemical vapor deposition (CVD) reactors to its growing facility in India.
IndependentsSep 25, 2025
Alex Moss’ New Flagship Brings Bold Jewels to SoHoThe jeweler to the stars has worked with Drake, A$AP Rocky, Tyler the Creator, and other celebrities.
