Technology

Supreme Court stays out of Internet tax debate

TechnologyDec 02, 2013

Supreme Court stays out of Internet tax debate

The U.S. Supreme Court has declined to hear a case from Amazon.com Inc. that challenges a New York law requiring the company to collect sales tax in the state, Bloomberg News reported Monday.

Washington--The U.S. Supreme Court has declined to hear a case from Amazon.com Inc. that challenges a New York law requiring the company to collect sales tax in the state, Bloomberg News reported Monday.

Amazon and Overstock.com Inc., another online retailer, said the New York law, upheld by the state’s top court, violates the constitution by demanding tax collection from businesses that don’t have facilities in that state. Amazon is headquartered in Seattle, while Overstock operates out of Cottonwood Heights, Utah, near Salt Lake City.

However, New York law states that retailers without a physical presence in the state must collect tax if they use a local resident to solicit business online. Amazon is subject to the law because it pays commission to New York-based affiliates for hosting online links to the retailer.

According to Bloomberg News, the justices made no comment in rejecting the appeals. The court’s refusal to hear the case leaves the New York law intact.

Brick-and-mortar store owners, including jewelers, have spoken up about the advantage not having to collect state sales tax gives online retailers. Jewelers of America, along with independent retailers, have lobbied Capitol Hill for years on behalf of the industry for sales tax fairness.

In February, the latest federal sales tax fairness legislation, the Marketplace Fairness Act of 2013, was introduced. The act would give states the option to require the collection of sales and use taxes already owed under state law by out-of-state businesses, rather than rely on customers to remit those taxes to the states, the method of tax collection to which they now are restricted.

U.S. Senators Dick Durbin (D-IL), Mike Enzi (R-WY), Lamar Alexander (R-TN) and Heidi Heitkamp (D-ND) introduced the act, which was passed by the Senate in May but has stalled in the House of Representatives.

According to Durbin, under the current tax loophole, many online and catalog retailers do not collect the same taxes as brick-and-mortar retailers do from customers who make purchases in their stores.

He said the Supreme Court’s decision, “further illustrates why a national solution is needed to level the playing field for local brick-and-mortar retailers and help them compete more effectively against out-of-state Internet retailers.”

The bill to date has the support of more than 280 labor, business and government organizations, and 22 governors have supported leveling the playing field for businesses by addressing sales tax fairness, Durbin said.

Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

Retrouvaí’s Treasure Necklace
CollectionsApr 19, 2024
Piece of the Week: Retrouvaí’s Treasure Necklace

A new addition to the “Heirloom” collection, this one-of-a-kind piece features 32 custom-cut gemstones.

Stock image crime handcuffs
CrimeApr 19, 2024
Grand Jury to Hear Case Against Jeweler Charged in Fatal Shove Following IJO Show

Last month in Dallas, David Walton pushed another jeweler, David Ettinger, who later died.

China Pearl collage
MajorsApr 19, 2024
Unique Designs Acquires China Pearl

The move will allow the manufacturing company to offer a more “diverse and comprehensive” range of products.

1-(3.18).JPG
Brought to you by
The Blueprint for Success in Scalable, Personalized Jewelry Retail

With Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.

Printed and digital AGS Ideal grading reports
GradingApr 19, 2024
AGS Ideal Report Now Available in Printed Form

From now through mid-May, GIA will be offering the reports at a 50 percent discount.

Weekly QuizApr 19, 2024
This Week’s Quiz
Test your jewelry news knowledge by answering these seven questions.
Take the Quiz
Stock image of a polished diamond in tweezers
SourcingApr 18, 2024
Diamond Trade Remains Cautious Amid Economic Uncertainty

De Beers’ rough diamond sales were down 18 percent year-over-year in its latest round of sales.

LVAJWS24_carousel_images_1872x1052_1.jpg
Supplier BulletinApr 18, 2024
Discover History’s Hidden Gems at the Las Vegas Antique Jewelry & Watch Show

Sponsored by the Las Vegas Antique Jewelry & Watch Show

Jewelers of America Fly In Washington, D.C.
Brought to you by
How Jewelers of America Represents Your Business

For over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.

Kelly Yoch
WatchesApr 18, 2024
Watch E-tailer Collectability Hires Kelly Yoch

The Patek Philippe expert will serve as personal curator for the brand-focused company.

Interior of TAG Heuer Boutique on Carnival Cruise Ship
WatchesApr 18, 2024
TAG Heuer Opens Its Largest Standalone Boutique at Sea

The 553-square-foot shop is aboard the Carnival Jubilee cruise ship.

 Stock image of a gavel
Policies & IssuesApr 17, 2024
NDC Prevails in U.K. Case Over Lab-Grown Diamond Advertising

NDC filed a complaint against Skydiamond for use of phrases like “diamonds made entirely from the sky.”

John Carter, 2024 Shipley Award winner
Events & AwardsApr 17, 2024
And the 2024 Winner of the Shipley Award Is …

John Carter received the AGS’s highest honor Tuesday afternoon at Conclave in Austin, Texas.

Visual from Tiffany & Co.’s With Love Since 1837 campaign
FinancialsApr 17, 2024
LVMH’s Q1 Jewelry Sales Fall 5%

LVMH said the company performed well despite an uncertain geopolitical and economic environment.

 B&D ribbon cutting in RI
MajorsApr 17, 2024
Stuller’s B&D Opens New Headquarters

B&D Sales and Service held a ribbon-cutting event for its new location in Cranston, Rhode Island.

Model Wearing Eat Cake Collection
CollectionsApr 16, 2024
Akaila Reid Launches ‘Eat Cake’ Collection

It’s ultra-feminine and filled with gold, pearls, and soft pastels.

Emily Highet Morgan, Emily Bennett
MajorsApr 16, 2024
Loudr Adds 2 Directors

Emily Highet Morgan and Emily Bennett have joined the agency’s team.

Stuller catalogs
MajorsApr 16, 2024
Stuller Releases First Lab-Grown Diamond Jewelry Catalog

Its updated book for mountings is also now available.

Headshot of Karen Rentmeesters
SourcingApr 16, 2024
Karen Rentmeesters Takes Over as Interim CEO of AWDC

She has been with the organization since 2010, most recently serving as its chief officer of PR and industry relations.

Alfred W. DeScenza
IndependentsApr 15, 2024
Alfred W. DeScenza of DeScenza Diamonds Dies at 95

He is remembered by loved ones for his loyalty, integrity, and kindness.

Madeleine K. Albright
AuctionsApr 15, 2024
Madeleine K. Albright Jewelry, Pins Coming to Auction

Hosted by Freeman’s | Hindman, the sale will take place May 7-8.

Audemars Piguet circa 1985 emerald car watch
AuctionsApr 15, 2024
All of Sotheby’s ‘Rough Diamonds’ Sold in Less Than an Hour

The auction house said all 24 timepieces offered in its underground sale of rare and avant-garde watches quickly found buyers.

AGS Conclave 2024 logo Austin
Events & AwardsApr 15, 2024
10 Can’t-Miss Sessions at AGS Conclave 2024

From lab-grown diamonds and AI to the inevitable Taylor Swift mention, here are some of Conclave’s most intriguing educational offerings.

My Next Question webinar
Recorded WebinarsApr 12, 2024
Watch: What Jewelers Need to Know About Insurance

From cybersecurity liability to trade show coverage, insurance experts share tips on how to build the right policy.

Evil Eye Charm with Turquoise Disc
CollectionsApr 12, 2024
Piece of the Week: Lionheart’s Evil Eye Gemstone Charm

The charm is a modern rendition of the evil eye amulet that has been worn for thousands of years.

The Jewelry Symposium scholarship winners 2024
Events & AwardsApr 12, 2024
The Jewelry Symposium Announces 4 Scholarship Winners

Ahead of its trade show next month, TJS awarded free registration and accommodations to one jewelry professional and three students.

SRK Empire and SRK House
Policies & IssuesApr 11, 2024
SRK Exports’ Journey Toward Net Zero Impact

By the end of this year, SRK’s diamond manufacturing complexes will achieve net zero emissions, one of an impressive array of achievements.

AGTA logo
Lab-GrownApr 11, 2024
AGTA Bans Lab-Grown Diamonds, Gemstones at GemFair

Members can still sell lab-grown stones, it said, but only natural gems are allowed on the show floor.

×

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