New York - Shipping supplies qualify as exempt promotional materials for use tax purposes


Shipping supplies that brand a common carrier's air delivery services and were provided to the carrier's customers free of charge were not subject to New York's use tax because they were exempt promotional materials. A New York trial court determined that the shipping supplies met the definition of "promotional materials" because they were designed and distributed for the purpose of promoting the taxpayer's business and the contained a clear promotional message. [United Parcel Service, Inc. v. Tax Appeals Tribunal, N.Y. Supreme Court, No. 512224 (8/16/12)]

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