Policies & Issues

From Capitol Hill, An Update on Sales Tax ‘Fairness’

Policies & IssuesJun 22, 2016

From Capitol Hill, An Update on Sales Tax ‘Fairness’

The issue continues to gain momentum on both sides of the aisle while resistance is waning, those who just visited the Hill say.


Washington, D.C.—The Jewelers of America Political Action Committee led a delegation of jewelers to D.C. last week for the sixth consecutive year, and returned with an update on the issue known as sales tax fairness.

For years, the jewelry industry, backed by JA, has been pushing Congress to pass legislation requiring e-tailers to collect sales tax on all transactions. Retailers, particularly jewelers, have argued for years that the fact that online sellers don’t have to collect sales tax in all 50 states puts brick-and-mortar businesses at a competitive disadvantage, as many consumers choose to buy online to save themselves money.

Two bills currently are circulating in Congress addressing the issue.

In the U.S. Senate, it’s the Marketplace Fairness Act (MFA), which was introduced in March 2015 by a group of four senators, two Democrat and two Republican. The MFA, which is nearly identical to legislation that made it through the Senate in 2013, is currently with the Senate finance committee.

In the U.S. House of Representatives, it’s the Remote Transactions Parity Act (RTPA), introduced in June 2015 by a bipartisan group of lawmakers led by Rep. Jason Chaffetz (R-Utah).

While sales tax legislation has hit hurdles in the House in the past, momentum continues to build while resistance to the legislation seems to be waning.

Susan Posnock, JA’s director of public affairs and education, said the bill currently has about 65 sponsors, about half Democrat and half Republican. It is with the House Judiciary Committee, headed by Rep. Bob Goodlatte (R-Va.).

While it seems unlikely the bill will make it out of committee in this very contentious, and very unusual, election year, JA has high hopes for 2017 and beyond.

“I think it’s inevitable that it’s going to pass,” said Posnock, who’s been monitoring the issue for years. “It’s not if; it’s when. It has the support. It’s just a matter of the right timing and the right pressure.”

She said that JA will really be looking to push the issue in the fall, after the noise generated by the presidential election quiets down.

Posnock said the hope is that the Senate version of the legislation, the MFA, will pass in the lame-duck session following the election, and that the House version, the RTPA, will pass after the new administration is ushered in in 2017.

If this is the case, she noted that the Senate--which passed a sales tax fairness
bill once already--will have to pass another version of the bill in the next Congress.

Both the House and the Senate will then have to reconcile the differences between their two bills and send it to the president for his, or her, signature.

Chris Fetzer of Haake Fetzer, the firm that leads JAPAC and JA legislative advocacy efforts in Washington, added that JA plans to continue to engage lawmakers in both chambers leading up to the November elections, in anticipation of the Senate’s floor consideration of the MFA during the lame-duck session.

He said that Senate passage of the MFA would increase pressure on the House to “afford sales tax fairness legislation long overdue consideration late this year as part of a larger legislative vehicle, and at a minimum, would position the broad coalition of industry and Congressional supporters to make passage of sales tax fairness legislation a Congressional priority in the next Congress.”

During their visit to Washington, members of the JAPAC delegation met with key supporters of legislation they say would level the playing field between online and brick-and-mortar businesses, including Reps. Steve Stivers (R-Ohio), Mia Love (R-Utah), and Ted Poe (R-Texas), all cosponsors of the RTPA, and, on the Senate side, Sen. Richard Burr (R-N.C.), who voted in favor of the measure when it passed in 2013.

They also talked with lawmakers about the Federal Trade Commission’s proposed changes to the Guides for the Jewelry, Precious Metals, and Pewter Industries, emphasizing JA’s opposition to the use of the word “cultured” when describing lab-grown diamonds.

JA said that lawmakers, particularly Stivers, “expressed interest” in supporting the association’s position.

During the two days they spent in Washington, the JAPAC delegation also met with other members of Congress, including Senate Majority Leader Mitch McConnell (R-Ky.), Rep. Pete Sessions (R-Texas), chairman of the House Rules Committee, and Rep. Michael Burgess (R-Texas), chairman of the Energy & Commerce Subcommittee with jurisdiction over the cultured diamond issue.

The JA members on the trip were:
Brian Alter, Alter’s Gem Jewelry, Beaumont, Texas (JA member);
Jon Bridge, Ben Bridge Jeweler, Seattle (JAPAC Board);
Jenny Caro, Jewelry by Designs, Woodbridge, Va. (JAPAC board chair, JA board);
Jeff and Jim Corey, Day’s Jewelers; Waterville, Maine (JAPAC board vice chair);
Ronda Daily, Bremer’s Jewelry; Peoria, Ill. (JA member);
Bill Farmer Jr., Farmer’s Jewelers; Lexington, Ky. (JAPAC board, JA board immediate past chairman);
Michael and Eva Greene, Wick & Greene, Asheville, N.C. (JA members); and
Brian Mann, David Mann Jewelers, Potomac, Md. (JA board).

Also in attendance were JA President and CEO David J. Bonaparte, Posnock, JA Executive Administration Manager Sharie Fogarty and Ret. U.S. Army Major Gen. Tim Haake and Fetzer of Haake Fetzer.
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

Sothebys The Desert Rose orangy pink diamond collectors week
AuctionsAug 29, 2025
Sotheby’s UAE Sale to Feature 32-Carat Fancy Vivid Orangy Pink Diamond

The highlight of a single-owner jewelry and watch collection, it’s estimated to fetch up to $7 million at auction this December.

Calvin Klein watch and jewelry campaign
FinancialsAug 29, 2025
Movado’s Q2 Sales Rebound Despite Tariff Impact

CEO Efraim Grinberg noted a resurgence in the fashion watch market.

Mark Davis Bullseye Necklace
CollectionsAug 29, 2025
Piece of the Week: Mark Davis’ ‘Bullseye’ Necklace

The “Bullseye” necklace, with vintage bakelite and peridot, August’s birthstone, is the perfect transitional piece as summer turns to fall.

japac-btyb.png
Brought to you by
Rallying Call for the Jewelry Industry on Tariffs and Other Key Issues

Jewelers of America is leading the charge to protect the industry amidst rising economic threats.

Image #1_Resized.png
Supplier BulletinAug 28, 2025
Clientbook Is Helping Jewelers Turn Clienteling Challenges into Wins with Hands-On Training and Coaching

Sponsored by Clientbook

Weekly QuizAug 29, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
GIA’s new report for lab-grown diamonds
GradingAug 28, 2025
GIA’s New ‘Quality Assessment’ for Lab-Grown Diamonds Is Coming

It will classify lab-grown stones into one of two categories, “premium” or “standard,” in lieu of giving specific color and clarity grades.

Botswana President Duma Boko
SourcingAug 28, 2025
Botswana Declares Public Health Emergency Amid Diamond Sales Slump

President Duma Boko addressed the country’s medical supply chain crisis in a recent televised address.

rio-article photo-diamond.jpg
Brought to you by
Taking the Moment Head On: How Rio Grande Champions the Present & Future of Fine Jewelry

As a leading global jewelry supplier, Rio Grande is rapidly expanding and developing new solutions to meet the needs of jewelers worldwide.

Afton Robertson-Kanne Borsheims
MajorsAug 28, 2025
Borsheims Names New Jewelry Buyer

Former Free People buyer Afton Robertson-Kanne recently joined the retailer.

Sissy’s Log Cabin Back to School and Bling
IndependentsAug 28, 2025
Sissy’s Log Cabin Donates School Supplies to Memphis Students

The jeweler teamed up with two local organizations for its inaugural “Back to School and Bling” event.

Taylor Swift Engaged
EditorsAug 27, 2025
Taylor Swift’s Engagement Ring Is a Fairy Tale for Vintage Diamond Cuts

The singer’s new bling, reportedly a natural old mine-cut diamond, is no paper ring.

11,685-carat Imboo emerald
SourcingAug 27, 2025
11,685-Carat Emerald Recovered From Zambia’s Kagem Mine

Dubbed the “Imboo,” or “buffalo,” emerald, the rough gemstone is part of Gemfields’ latest emerald auction, which is taking place now.

Shopping cart
SurveysAug 27, 2025
Consumer Confidence Slips in August Amid Job, Income Worries

Plans for dining out, booking vacations, and buying big-ticket items were down.

Mine + Found Play Collection Prize Bubble Locket, Whistle Pendent, Fortune Dice
CollectionsAug 27, 2025
Mined + Found’s New Collection Gets Playful

The “Play” collection centers on nostalgic toys that have kinetic elements to carry playfulness and wonder into adulthood.

CCWW lifesaver necklace
CollectionsAug 26, 2025
Does Your Jewelry Stack Need a Snack?

Designer Christina Puchi, the creative force behind CCWW Designs, has created charms and pendants based on iconic candies and crackers.

Nick Jonas x Fossil Campaign
WatchesAug 26, 2025
Nick Jonas Gets Nostalgic in New Fossil Campaign

The Jonas Brothers star showed off new timepieces against the backdrop of his favorite spots in his home state of New Jersey.

Wally Hinkamp and Donna Hinkamp Warren
IndependentsAug 26, 2025
Hinkamp Jewelers Celebrates 70 Years

The family-owned jeweler in Fayetteville, North Carolina, is in the hands of the second generation.

Emmanuel Raheb
ColumnistsAug 26, 2025
Back to School, Back to Style: Why August is Prime Time for Self-Gifting

In his latest column, Emmanuel Raheb shares tips for encouraging customers to treat themselves to new jewelry.

London Jewelers Rolex East Hampton Boutique Exterior
WatchesAug 25, 2025
London Jewelers Brings Rolex to Historic Hamptons Home

The new stand-alone Rolex boutique is housed in the former Odd Fellows Hall, a landmark built in 1897.

Madison Keys
CollectionsAug 25, 2025
Tennis Star Madison Keys Has the Perfect Necklace for the US Open

The Brilliant Earth ambassador co-designed a diamond medallion featuring meaningful symbols.

Marie Lichtenberg emerald and diamond locket on the 18-karat gold “Rosa” chain
TrendsAug 25, 2025
Amanda’s Style File: That’s a Wrap

Wrap jewelry is more than just a trend; it’s the perfect motif for the coming season of layering, scarves, and pumpkin spice.

WatchTime New York
WatchesAug 25, 2025
WatchTime NY Show Returns for 10th Anniversary Edition

The three-day watch collector show, coming this October, will feature 44 exhibiting brands, as well as a new dinner experience.

Sriram “Ram” Natarajan
GradingAug 22, 2025
Former Head of GIA India Promoted to Oversee Global Operations

Sriram “Ram” Natarajan is now GIA’s senior vice president of laboratory operations and is based out of the lab’s headquarters in Carlsbad.

Retrouvaí Diamond Vein Bond Collar
CollectionsAug 22, 2025
Piece of the Week: Retrouvaí’s ‘Diamond Vein Bond’ Collar

The one-of-a-kind collar represents the beauty of imperfection and the strength to rebuild.

Kendra Scott
MajorsAug 22, 2025
Kendra Scott Returns as CEO of Her Jewelry Empire

Three C-suite executives, including former CEO Tom Nolan, have resigned as part of what the company describes as a “transition.”

Claire’s storefront
MajorsAug 21, 2025
Claire’s Finds Buyer, Could Save up to 950 Stores

The retailer, which recently filed Chapter 11, inked a deal to sell its North American business and intellectual property.

Target CEO Brian Cornell and COO Michael Fiddelke
MajorsAug 21, 2025
Target Names New CEO as Sales Continue to Lag

Target CEO Brian Cornell will step down in February and be replaced by the company’s chief operating officer, Michael Fiddelke.

×

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