Under a 1992 Supreme Court decision, retailers are not required to collect sales tax on online purchases in states where they do not have a physical presence, such as a warehouse, store or distribution center, although some states have passed laws requiring online collections. Supporters claim that leaves brick-and-mortar stores victimized by online retailers like Amazon and eBay that generally do not have to collect the tax and deprives states of billions of dollars in tax receipts annually.

Earlier this year, the jewelry stores' trade association wrote Enzi and Delahunt urging them to move quickly. Jewelers said they have been hurt by consumers browsing to get a sense of what they wanted, and then heading home to buy at online vendors like Blue Nile to avoid sales tax. "Internet retailers should not receive a tax advantage at the expense of traditional retailers and state and local governments," say August talking points from the International Council of Shopping Centers. Read the full story here (subscription required).