Taxpayer protests the imposition of use tax on direct mailers and
associated postage.
DISCUSSION
Taxpayer protests the imposition of use tax on amounts it paid
direct mail vendors to send bills to customers.
Taxpayer states that the direct mailings are a service and thus
are not taxable. Taxpayer also states
that the postage paid to the direct mail vendors is not taxable.
…
Regarding the direct mailers, the Department only imposed use tax
on those mailers sent to Indiana customers.
…
In conclusion, the invoices list a total combined charge for
services and tangible personal property. The transactions in question are unitary
transactions subject to sales and use taxes, as provided by IC
6-2.5-1-1(a). The invoices do not
establish that the value of the tangible personal property transferred is less
than ten percent of the service charge and so do not establish that the
transactions qualify for the exemption defined under 45 IAC 2.2-4-2. The postage is properly included as subject to
use tax, as provided by IC § 6-2.5-1-5(a).
Taxpayer has not met the burden of proving the
proposed assessments wrong, as required by IC § 6-8.1-5-1(c).
FINDING
Taxpayer's protest is denied.
http://www.in.gov/legislative/iac/20120229-IR-045120083NRA.xml.pdf