MajorsOct 13, 2026
David Webb Owner Purchases Lugano JewelryThe high-end jewelry retailer was sold to private investment firm Middle West Partners and a group of longtime clients.
Policies & IssuesJun 22, 2018
SCOTUS: States Can Make Online Sellers Collect Sales Tax
The Supreme Court voted to overturn Quill, which makes way for states to begin collecting sales tax from online merchants.
The Supreme Court ruled 5-4 to overturn Quill, the 1992 ruling that barred states from collecting sales tax from sellers that do not have a physical presence in the state.
Washington--The U.S. Supreme Court has made way for states to begin collecting sales tax from all online sellers by overturning a decision made when only 2 percent of Americans had internet access and mail-order catalogs were king.
Quill Corp. v. North Dakota (1992), which barred states from collecting sales tax from sellers that do not have a physical presence in the state, was overturned by a vote of 5-4, the court announced Thursday morning.
Justice Anthony M. Kennedy authored the concurring opinion, joined by Justices Ruth Bader Ginsberg, Samuel A. Alito Jr., Neil M. Gorsuch and Clarence Thomas.
“Quill puts both local businesses and many interstate businesses with physical presence at a competitive disadvantage relative to remote sellers,” he wrote. “Remote sellers can avoid the regulatory burdens of tax collection and can offer de facto lower prices caused by the widespread failure of consumers to pay the tax on their own.”
(When consumers buy an item online and do not pay sales tax at the time of the purchase they are required by law to report and pay it when they do their annual income taxes, though hardly any do so.)
“In effect,” the concurring opinion continues, “Quill has come to serve as a judicially created tax shelter for businesses that decide to limit their physical presence and still sell their goods and services to a state’s consumers—something that has become easier and more prevalent as technology has advanced.”
Chief Justice John Roberts and Justices Stephen Breyer, Sonia Sotomayor and Elena Kagan dissented, with Roberts stating that while e-commerce has grown into a “significant and vibrant” sector of the economy, the changing of the physical presence rule ultimately should be left up to Congress.
He noted the costs this decision will impose on retailers of all sizes, as they grapple with how to navigate the web of complex tax laws that vary from jurisdiction to jurisdiction.
“The burden will fall disproportionately on small businesses,” Roberts wrote in the dissenting opinion. “One vitalizing effect of the internet has been connecting small, even ‘micro,’ businesses to potential buyers across the nation. People starting a business selling their embroidered pillowcases or carved decoys can offer their wares throughout the country—but probably not if they have to figure out the tax due on every sale.”
The Supreme Court decision to overturn Quill is seen as a victory by many brick-and-mortar sellers
Editors' Picks
Sponsored by
including jewelers, who have long complained about having to compete with sellers who don’t have to charge sales tax.
On Thursday, both Jewelers of America and the National Retail Federation issued statements lauding the Supreme Court’s decision, though both noted the need for congressional action to follow.
“This historic decision from the Court in support of sales tax fairness is a major victory for the jewelry industry, providing a clear path to level the playing field between traditional and online retailers,” JA President and CEO David J. Bonaparte said. “Now, Congress must respond by passing federal legislation to create a universal federal framework for sales and use tax collection in a way that benefits businesses, regardless of the state where their business resides, and avoids a patchwork of state-by-state laws.”
NRF CEO Matthew Shay called the decision a “major victory” but said Congress must now follow the court’s lead and pass legislation implementing uniform, national rules that “provide consistency and clarity for retailers across the country.”
JA, which just held its annual fly-in in which it brings jewelers to meet with Congressional leaders, said it will continue to push Congress to pass federal legislation for sales tax collection.
The chance to revisit and overturn Quill came to the Supreme Court earlier this year after the state of South Dakota, which estimates that it loses $48-$58 million a year due to uncollected taxes from online sales, asked the court to reconsider the two decades-old decision.
Overstock.com, one of the online retailers that battled South Dakota over the issue, issued a statement following Thursday’s ruling indicating it would comply but called on Congress to step in and legislate a “fair solution.”
“Today the U.S. Supreme Court has re-shaped the interstate commerce landscape in a move that could impact small business innovation on the internet, which has been a driving force behind our nation’s economy for the last 15 years,” said Jonathan Johnson, an Overstock.com executive and board member.
“The framers of the Constitution intended Congress to regulate interstate commerce by thoughtful legislation. To lessen the potential impact of today’s ruling on internet innovation, Congress can, and should, pass sound legislation allowing states to accomplish their aims while still permitting small internet business to thrive.”
The full opinion can be found on SupremeCourt.gov.
Editor’s note: The story was updated post-publication to include a statement from Overstock.com, which was received after the story was published.
On Thursday, both Jewelers of America and the National Retail Federation issued statements lauding the Supreme Court’s decision, though both noted the need for congressional action to follow.
“This historic decision from the Court in support of sales tax fairness is a major victory for the jewelry industry, providing a clear path to level the playing field between traditional and online retailers,” JA President and CEO David J. Bonaparte said. “Now, Congress must respond by passing federal legislation to create a universal federal framework for sales and use tax collection in a way that benefits businesses, regardless of the state where their business resides, and avoids a patchwork of state-by-state laws.”
NRF CEO Matthew Shay called the decision a “major victory” but said Congress must now follow the court’s lead and pass legislation implementing uniform, national rules that “provide consistency and clarity for retailers across the country.”
JA, which just held its annual fly-in in which it brings jewelers to meet with Congressional leaders, said it will continue to push Congress to pass federal legislation for sales tax collection.
The chance to revisit and overturn Quill came to the Supreme Court earlier this year after the state of South Dakota, which estimates that it loses $48-$58 million a year due to uncollected taxes from online sales, asked the court to reconsider the two decades-old decision.
Overstock.com, one of the online retailers that battled South Dakota over the issue, issued a statement following Thursday’s ruling indicating it would comply but called on Congress to step in and legislate a “fair solution.”
“Today the U.S. Supreme Court has re-shaped the interstate commerce landscape in a move that could impact small business innovation on the internet, which has been a driving force behind our nation’s economy for the last 15 years,” said Jonathan Johnson, an Overstock.com executive and board member.
“The framers of the Constitution intended Congress to regulate interstate commerce by thoughtful legislation. To lessen the potential impact of today’s ruling on internet innovation, Congress can, and should, pass sound legislation allowing states to accomplish their aims while still permitting small internet business to thrive.”
The full opinion can be found on SupremeCourt.gov.
Editor’s note: The story was updated post-publication to include a statement from Overstock.com, which was received after the story was published.
More on Policies & Issues
The Latest
Lab-GrownOct 13, 2026
Stephanie Gottlieb Takes Lab-Grown Diamond Collection WholesaleThe jewelry designer has partnered with Sofer Jewelry to distribute her 85-piece lab-grown diamond collection.
IndependentsOct 13, 2026
Retailer Hall of Fame 2026: Sean DunnDunn, this year’s Single-Store Independent inductee, is passionate about innovation and telling the story of natural diamonds.
Brought to you by
Meet Gemology’s Next Generation Microscope: GIA® Gemolite® NXT Professional EditionExperience gemstones with greater precision and comfort than ever before.
AuctionsOct 13, 2026
Christie's Geneva To Auction 'Bulgari Pink' DiamondThe 24-carat fancy intense pink diamond ring could fetch up to $18 million at the November sale.
Weekly QuizOct 08, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
IndependentsOct 13, 2026
Greenwich St. Jewelers’ New Candle Smells Like HomeThe “Island Jewel” candle honors New York City and Puerto Rico and raises money for the island’s water relief efforts.
TechnologyOct 13, 2026
GemFind Is a New JA Member Benefit Partner The partnership will give JA members access to preferred pricing, exclusive benefits, technology solutions, education, and resources.
Brought to you by
Your Piece Could Be the One Editors Talk AboutSubmit your pieces for a chance to win in this year's competition.
SurveysOct 09, 2026
These Will Be the 10 Busiest Days for In-Store Shopping This Holiday SeasonStores should expect to see the most customers on Nov. 27, and Christmas week is expected to be hectic too, as Dec. 25 falls on a Friday.
CollectionsOct 09, 2026
Elisa Solomon Collabs With Serendipity 3 on ‘Frozen Hot Chocolate’ CharmThe charm, our Piece of the Week, features brown diamond frozen hot chocolate topped with white diamond whipped cream and a ruby straw.
AuctionsOct 09, 2026
8-Carat Blue Diamond Goes Unsold at UK Jewelry Auction The top lot of Elmwood’s recent fine jewelry sale in London was a 1.84-carat, D color Tiffany & Co. solitaire diamond ring.
WatchesOct 09, 2026
Movado to Sell Majority Stake in Ebel for $66.5MThe watch company agreed to sell a 95 percent interest to a group comprised of F.P. Journe, Chanel, and Swiss watch exec Pierre Jacques.
CollectionsOct 08, 2026
Brent Neale’s New Collection Goes ‘Back to Basics’It revisits the brand’s most requested silhouettes, from "Pillow"-set necklaces and bracelets to "Signature"-set rings and earrings.
SourcingOct 08, 2026
Ethical Gem Fair Heads Back to BrooklynThe trade-only event includes buying opportunities as well as educational sessions on artisanal mining, the new Paraíba source, and more.
Events & AwardsOct 08, 2026
Pattons Fine Jewelry Sweeps Local Design ContestAra Chanakian, a jeweler at Pattons, took home top honors in every category at Jewelers of Louisiana’s annual jewelry design competition.
AuctionsOct 08, 2026
Reba McEntire’s Jewelry, Watches Head to Julien’s AuctionsThe live charity benefit sale in Nashville will also feature gowns, boots, and other memorabilia from the country music legend.
Supplier BulletinOct 08, 2026
Overnight Mountings’ Bridal Builder Helps Jewelers Turn Custom Design into a Hands-On Selling ExperienceSponsored by Overnight Mountings
CollectionsOct 07, 2026
Blue Nile, Royal Asscher Collection Highlights Natural Diamond BeautyBlue Nile, a Signet Jewelers-owned brand, is now Royal Asscher’s exclusive licensed retailer in North America.
CollectionsOct 07, 2026
4 Standout Pieces in Audemars Piguet’s First High Jewelry Collection “Royal Oak” pays homage to the brand’s most popular watch model using 18-karat gold as well as diamonds, emeralds, and sapphires.
MajorsOct 07, 2026
Empire Safe & Vault Promotes Juan Morales to CEOAs part of the transition, Joseph Nicosia has stepped into the role of COO.
SourcingOct 07, 2026
AGTA Extends Deadline for 2026 Spectrum Awards EntriesParticipants now have until Oct. 14 to complete their submissions.
CrimeOct 06, 2026
6 Charged in Connection to String of New Jersey Smash-and-GrabsThe alleged thieves used crow bars and sledgehammers to smash into jewelry stores across the state.
ColumnistsOct 06, 2026
Sherry Smith: Is the Consumer Really Trading Up?Ahead of the holidays, Smith urges jewelers to take a hard look at who’s buying jewelry, what they’re purchasing, and who’s stopped buying.
SourcingOct 06, 2026
DDG Taps Influencers for ‘My Diamond Does Good’ CampaignIn the new consumer-facing campaign, four fashion and lifestyle creators share the stories behind their natural diamond pieces.
MajorsOct 06, 2026
Frederick Goldman Names COO, CMOFGI President John Orrico is also leaving the company after more than 13 years.
Events & AwardsOct 06, 2026
JIS Fall Returns to MiamiThe 2026 edition will feature presentations on alternative materials and design trends, as well as pop-up activations on the show floor.
SourcingOct 05, 2026
De Beers to Take Full Ownership of Gahcho KuéIt is the last fully operational diamond mine in Canada following the recent closures of Ekati and Diavik.
