A new U.S. Supreme Court ruling means states can force online retailers to collect sales tax just as brick-and-mortar stores do.
The decision, which reverses a South Dakota ruling from 1992, was 5-4, CNN reports.
Justice Anthony Kennedy, who wrote the majority opinion, stated: “The Internet’s prevalence and power have changed the dynamics of the national economy. The expansion of e-commerce has also increased the revenue shortfall faced by States seeking to collect their sales and use taxes.”
The issue has been closely watched by brick-and-mortar jewelers facing increased competition from online jewelry sellers.
In a statement, Jewelers of America explained that the 1992 ruling that was overturned had “established the current system under which states are prohibited from collecting sales and use taxes from sellers that do not have a physical presence in-state that led to the current uneven playing field between traditional and online sellers.”
The organization said it “applauds the decision.”
Advertisement
“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,” said David J. Bonaparte, JA president and CEO. “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.”
Read more at CNN
Closing With Confidence: How Bailey's Fine Jewelry Achieved Outstanding Results With Wilkerson
When Trey Bailey, President and CEO of Bailey's Fine Jewelry, decided to close the Crabtree location in Raleigh, North Carolina after 15 years, he knew the decision needed to be handled with intention and professionalism. The goal was clear: exit the location while maintaining financial strength and honoring the store's legacy.
Having worked with Wilkerson successfully in the past, Bailey understood the value of their comprehensive approach. "They understood both the emotional and financial sides of the store closing sale," Trey explains. "Their reputation for professionalism, results and care made it a very easy decision."
The results exceeded expectations. Wilkerson helped Bailey's sell through significant inventory while maintaining the dignity of the closing process. "They don't just run a sale, they help close a chapter in the best way possible," Bailey says, strongly recommending Wilkerson to any jeweler facing a similar transition.
