A retailer's advertising materials that were printed and mailed from outside Massachusetts and distributed free of charge to designated recipients in the state were exempt from Massachusetts use tax as direct mail promotional advertising materials. The materials qualified as both "advertising leaflets" and "similar printed advertising" under the exemption statute. The inclusion of the "similar printed advertising" category in the statute indicated that the legislature intended to exempt a broad category of advertising, including the type of advertising sent by the taxpayer. In addition, the Appellate Tax Board acted within its authority when it chose to rely on its own interpretation of the exemption statute rather than on the interpretation of the Commissioner of Revenue contained in a technical information release (TIR 96-5). It was within the Board's authority to disagree with the TIR if it concluded that the Commissioner's interpretation was contrary to the language of the statute. Furthermore, it was proper for the Board to examine the legislative history behind the enactment of the exemption statute in order to determine how broadly it should interpret the phrase "similar printed advertising." (Bloomingdale's, Inc. v. Commissioner of Revenue, Massachusetts Appeals Court, No. 03-P-1002, April 12,2005.)

Copyright CCH Incorporated: Federal and State Tax May 3, 2005
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