Sales and Use Tax Administrative Hearing Docket # 2006-243 - 01/11/2007

Issue: (1)  Whether the Taxpayer purchased non-taxable advertising services or tangible personal property in the form of printed advertising material for distribution in this State which are subject to use tax on its cost price. (2)  Whether the charge for postage on the printed advertising material is considered a part of the “sales price” of the printed advertising material distributed to donees in North Carolina taxable.