Commissioner of Revenue v. Purity Supreme, Inc.

The sole issue in this case is whether the Appellate Tax Board (board) erred in reversing the denials by the Commissioner of Revenue (Commissioner) of the applications for abatement of Purity Supreme, Inc. (Purity), in an amount representing that portion of assessed taxes attributable to the purchase of “compositions” from an advertising agency and used by newspapers for Purity’s advertisements. We hold that the board committed no error and that Purity was entitled to an abatement.

Crucial to the issue is an understanding of the nature of a “composition” as that term is used in the production…