The JA Report: News, Tips & Trends from Jewelers of America

Jewelers of America Gets Sales Tax Fairness Recognition

Jewelers of America was among a small group of influential organizations to receive acknowledgement from Senator Mike Enzi (R-WY) on November 9, during introduction of the Marketplace Fairness Act (S.1832), a broadly bipartisan sales tax fairness bill.

From the Senate floor, Sen. Enzi asked for and received unanimous consent to enter Jewelers of America’s letter of support for the bill into the Congressional Record. JA was one of 12 supporting organizations the Senator mentioned by name.

JA continues to support all sales tax fairness proposals, but we believe the Marketplace Fairness Act represents the best opportunity for this legislation to pass. Learn more about sales tax fairness and how you can take action to support it today!

Watch Sen. Enzi introduce the bill -- in a video after the jump.

The Haake Report: Review of Q4 2011 Legislative Outlook

It has been a busy year for Congress and the next year promises to be even more critical -- for legislators and businesses -- as the 2012 elections approach. In this high-stakes environment, Jewelers of America is tracking issues that could impact jewelry businesses while advocating on behalf of jewelry industry interests.

Our legislative counsel, Haake & Associates, offers the following insights:
Recent, hard-fought legislative victories -- like the repeal of the IRS 1099 regulation, the introduction of the Main Street Fairness Act in Congress and the continued protection of the last in, first out (LIFO) accounting method -- are temporary gains.

Support Main Street Fairness!

Congress recently introduced the Main Street Fairness Act, which would eliminate the unfair tax advantage Internet merchants and other remote sellers now enjoy over traditional retailers.

Getting this important legislation introduced was the first step, but the Senate (S. 1452) and House (H.R. 2701) bills need bipartisan support. Jewelers of America urges our members and other jewelry businesses to reach out to their Senate and House representatives at the local level. You can do this by attending a meeting or event where their representative will be looking to hear from constituents while on summer recess.

Encourage your Representatives to support this legislation:

JAPAC Talks Retail Jewelry Issues with Capitol Hill Elite

Jewelers of America (JA) leaders and board members of JAPAC, the Jewelers of America Political Action Committee, met with legislators in Washington, D.C. on June 22 to ask them to support issues that impact jewelry businesses. We've included photos from the successful trip below.

JAPAC is the only PAC that supports the fine retail jewelry industry in on the federal level. Jewelers of America members can contribute to and learn more about JAPAC by visiting  www.jewelers.org/retail/r_JAPAC/.

Jewelers of America Supports Delay on Mercury Ban

Jewelers of America (JA) has been working with the American Watch Association (AWA) to push officials in Maine, Connecticut and Rhode Island to postpone bans on mercury in button-cell batteries. All three states had initially scheduled their respective bans to go into effect on July 1, 2011. The associations are asking for a year postponement, to July 1, 2012.

So far, the campaign has been a success. JA recently got good news when we learned Maine and Connecticut have postponed their bans. Maine moved the state ban to the end of this year, while Connecticut’s ban has been postponed until July 1, 2012.

Take Legislative Action in Las Vegas

Jewelers of America is offering an opportunity at the JCK Show in Las Vegas for jewelry retailers and suppliers to speak out on issues that could impact their businesses. From June 3-6, 2011, visitors to the JCK Show can stop by JA’s Booth (#L110) at the Mandalay Bay Resort to sign important legislative petitions, watch demos of JA’s online legislative outreach tools and learn about JA’s legislative advocacy.

Jewelers Fight Connecticut Luxury Tax

Jewelers of America (JA) applauds former Board Chairman John Green, President and CEO of Lux Bond & Green in West Hartford, CT, for speaking out against a proposed 3% luxury tax on jewelry priced over $5,000 in the state. The new tax was included in Connecticut Gov. Dannel Malloy’s proposed 2012-2013 budget.

Take Action to Stop Luxury Tax
Jewelers of America has joined forces with the CJA to fight the tax. We are urging Connecticut-based jewelry businesses to write Gov. Malloy and their state representatives, using JA’s “Stop the Luxury Tax on Jewelry in Connecticut!” action alert, which includes suggested talking points on the issue.

Go to Jewelers of America's Legislative Action Center to take action today!

2011 Legislative Outlook: What Could Affect Jewelry Businesses

The new Congress means new opportunities -- and challenges -- for jewelry businesses on the legislative front. With this in mind, Jewelers of America has updated our Federal Legislation Guide, which provides an overview of the key issues we’ll be tracking this year. The new playing field on Capitol Hill has already yielded some changes. In fact, the impact of the midterm elections was felt even before legislators returned to Washington, D.C. after the New Year.

Legislative Boost for Businesses Expected

Update: The Senate and the House has passed the Tax Cut Bill with no changes to the provisions listed below.

In early December, President Obama and Congress reached an agreement that would extend the Bush-era tax cuts at all income levels for the next two years.  The agreement is a compromise between the administration and Republican leaders and includes a number of additional provisions that could have a positive impact on jewelry businesses.

Following the agreement, the Senate passed a tax bill on December 15.  The House began consideration of the Senate-passed bill on December 16.  Although Democrats are expected to offer an amendment that would alter the bill’s existing estate tax provision, Jewelers of America’s legislative counsel in Washington, D.C., Haake & Associates, expects that all other provisions that benefit Jewelers of America members and other jewelry businesses are unlikely to change.

The Haake Report: JAPAC Has a Say in D.C.

With the most recent election cycle completed, Jewelers of America’s Legislative Counsel, Timothy Haake, says that the influence of jewelers has grown significantly on Capitol Hill. 

Haake, the founder and principal of Haake & Associates, says that JAPAC, the Jewelers of America Political Action Committee, made its biggest and most successful contributions to political campaigns during the recent midterm elections. JAPAC contributed to the campaigns of 28 candidates looking to be elected or retain their seats in tight or "toss-up" races. Of these, 22 candidates went on to win on November 2.

De Beers Diamonds -- Update on Class Action Case

The U.S. appeals court for the Third Circuit in Philadelphia has set a hearing date for February 23, 2011, to reconsider its previous rejection of the $295 million settlement for De Beers antitrust case. The settlement was dealt a blow when the court declared that it was not legal and could not proceed.

The court found issue with the differing laws in the 50 states and the consequential treatment of each plaintiff -- all of the consumers, purchasers or resellers who filed claims. Appeals were filed, and now the court has agreed to rehear the case before all 15 judges.

Industry associations including the Diamond Manufacturers and Importers Association of America (DMIA) and the Jewelers Vigilance Committee (JVC) have submitted briefs to support the lower court’s approval of the settlement.

As the court case involving De Beers diamond sales and alleged overcharging drags on, Jewelers of America -- with its attorneys -- is following the case very closely. JA is advised that the end is in sight, even though there is another obstacle to clear. According to the most recent update from the DMIA, the earliest these matters could be settled, barring further complications, will be late next summer. JA will continue to keep its members and consumers updated on the action of the rehearing before the Third Circuit Court of Appeals.

For more information about the De Beers Settlement, visit:

• Appeals court to re-hear De Beers settlement case
• De Beers Settlement Website

 

Jewelers of America Reaches Out to Legislators

With the final “lame duck” session of the 111th Congress convening today, November 15th, now is the time for jewelers to speak up on issues that could impact their businesses. Jewelers of America President & CEO Matthew A. Runci did just that on behalf of Jewelers of America members, with a letter sent to all 535 lawmakers on November 8th.

Runci told legislators that, “As owners of mom-and-pop shops, JA members make invaluable contributions to the local, regional and national economy through job creation and financial support of local commerce.”

More Cadmium Regulation

Federal and state officials continue to take a close look at how to effectively limit the levels of cadmium in children’s jewelry.

The Consumer Product Safety Commission (CPSC), said this week that it will look to experts -- including those in the jewelry industry -- to help set safety standards. Meanwhile, California recently became the fourth state to pass legislation that limits the levels of cadmium in children’s jewelry and other products.

Officials first began targeting cadmium at the beginning of the year, when an Associated Press (AP) investigation identified dangerous levels of cadmium in some Chinese-made children's costume jewelry. Retail jewelers should be aware of action on this issue on both the state and federal levels, and Jewelers of America has prepared the following update.

How the Small Business Jobs Act Helps Retail Jewelry Businesses

Jewelers of America welcomes passage of the Small Business Jobs and Credit Act, H.R. 5297, which was signed into law by President Obama last month. The legislation provides tax breaks and a new lending pool intended to assist small businesses in gaining access to much-needed capital.

Among the business provisions in the new law that could have the biggest impact on jewelers:

Mr. Headley Goes To Washington

Jewelers of America is taking a stand for jewelers’ issues in Washington, D.C! On July 29, JA’s Chief Operating Officer Robert Headley attended a press conference on Capitol Hill, held by Representative William Delahunt, of Massachusetts, to announce his introduction of The Main Street Fairness Act, which would help level the playing field between online and brick-and-mortar retailers.