There is a willingness to comply with new government-mandated regulations, with an insistence that they should be practical and realistic.
What’s Happening in Washington That Will Affect Retailers
Major Gen. Tim Haake gave a rundown on tax reform and the ongoing issue of online sales tax as Centurion opened Sunday.
Scottsdale, Ariz.--As the Centurion show opened in Scottsdale, a lawyer and lobbyist gave about 100 show attendees a rundown on what’s happening in Washington right now that might impact their businesses.
In a session held Sunday morning and presented by Jewelers of America, Tim Haake outlined provisions of the recently passed tax reform bill that are of interest to business owners.
Haake is a retired major general who is an attorney in the Washington, D.C. office of international law firm Dentons and is a principal at Haake Fetzer, the D.C. consulting firm that lobbies on behalf of JA and its political action committee, JAPAC, in the nation’s capital.
Haake presented his points on the tax reform bill largely without political comment, despite the fact that the tax overhaul, like any legislation, has plenty of both detractors and supporters.
Signed into law by the president Dec. 22, the bill has been criticized by some as being slanted in favor of the wealthy and big corporations and harmful to the middle and lower classes in the long run, while others have lauded it as much-needed reform that will ultimately benefit everyone.
The tax reform bill cut the corporate tax rate from 35 percent to 21 percent and includes a 20 percent tax deduction for “pass-through businesses,” like S corporations, partnerships, LLCs and sole proprietors.
Haake said it also allows for full expensing of equipment and other property for a roughly five-year period, between Sept. 27, 2017 and Jan. 1, 2023.
In addition, the bill doubled the estate tax exemption to $11.2 million for singles and $22.4 million for couples. It is indexed for inflation, which means it will increase every year.
The Border Adjustment Tax, or BAT, which is a levy JA lobbied against via JAPAC, was eliminated from the bill, while the LIFO (Last In, First Out) method of accounting, which is used to place an accounting value on inventory and saves jewelers large amounts of money every year, was preserved. He categorized these both as “victories” for JA and its members.
Haake also provided updates on several other pieces of legislation of interest to the jewelry industry, including online sales tax and recently introduced legislation to reinstate the ban on Burmese rubies.
As reported earlier this month, the Supreme Court has agreed to reconsider Quill, the 1992 decision that allows online businesses today to avoid charging sales tax in states
JA has been lobbying for online sales tax reform for years on behalf of its members, who say they lose sales to online competitors due to the fact that consumers can save the sales tax when shopping online.
While the Supreme Court’s decision to reconsider Quill is a victory for proponents of sales tax “fairness,” Congress would still need to intercede in order to pass a federal framework for sales and use tax. Otherwise, businesses could find themselves operating within a network of potentially disparate laws passed by individual states.
Though online sales tax reform has been stymied by Congress for a decade, Haake pointed out that one major opponent of the change recently announced that he won’t seek re-election.
Rep. Bob Goodlatte (R-Va.), chairman of the House Judiciary Committee and a longtime opponent of online sales tax legislation, said in November that he’s not running again and so will not be in Congress come January 2019.
“We’re not out of the woods yet,” on the issue, Haake said, “but we’re looking pretty good.”
Haake also noted that bills to reinstate the ban on Burmese rubies and jadeite, which was lifted in October 2016, have been reintroduced in the House and the Senate.
The Latest
A combination of factors is driving growth in the industry despite the precipitous drop in prices across the board.
The zone’s modernization will enhance and increase India’s jewelry manufacturing capabilities while aiding small and mid-sized businesses.
For over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.
The company plans to invest $25 million in marketing initiatives to boost awareness around its namesake and licensed brands.
Optimism about the current state of the economy was offset by anxiety around inflation and the political environment.
DDG encourages retailers to educate customers on the positive impact of purchasing natural diamonds.
Ho Brothers offers scalable solutions for the future of custom jewelry.
Highlighting the most iconic Tiffany collections, it’s inspired by the company’s late window designer, Gene Moore.
Jen Cullen Williams and Duvall O’Steen explore how jewelers can save time and money by using AI to analyze engagement and create content.
The retailer previously turned down an $8.4 billion offer in 2018.
The Florida store’s owner Miguel Gonzalez is retiring.
The lab stresses the importance of accurate identification, as the difference in price is “substantial.”
The brand also plans to expand its retail footprint from 138 to 200 stores over the next three years.
One is reserved for a NAJA member, the other for a non-member.
Longtime employees Carie Lehrke and Megan Mattice have received promotions.
Three guests joined National Jeweler and Jewelers of America to discuss trending time periods, spotting reproductions, and more.
Chris Clipper and Robert Lepere join the company with 50 years of combined experience.
The trendy, metallic earrings wink at classic spring colors.
JSA said a man and woman pulled the safe out of an Oakland jewelry store but couldn’t quite get it into their van.
The miner’s March auction generated $19 million.
Helen McCluskey will succeed H. Todd Stitzer when he meets his 12-year term limit in June.
“Chopard x Julia Roberts” showcases the first gems cut from the 6,000-carat-plus “Insofu Emerald."
The jewelry giant also posted a double-digit drop in same-store sales for the full year.
Elvis gave the watch to actress Dodie Marshall after filming “Easy Come, Easy Go.”
The Gianmaria Buccellati Foundation Award for Excellence in Jewelry Design was presented to a graduate of the GIA school in Taipei.
The man was charged with money laundering in connection with the theft of gold, silver, and platinum over the course of three years.