World Publications, Inc. v. Vermont Department of Taxes

¶ 1. Taxpayer distributes a free weekly newspaper in central Vermont called The World. Once a month, the newspaper includes a coupon book, produced and printed by taxpayer, that features coupons for local businesses. The Commissioner of Taxes concluded that the coupon books are not “component parts” of the newspaper, and therefore the cost of printing the coupon books is “not exempt from sales and use tax.” The superior court affirmed. We, too, affirm.

¶2. The following facts are drawn from the parties’ stipulation before the Commissioner. Taxpayer publishes The World and distributes it for…