Sears, Roebuck & Co. v. Woods

OPINION

JERRY SCOTT, Special Justice.

In the context of the sales and use tax statutes, this case presents an issue of first impression in Tennessee. The question is whether preprinted advertising supplements inserted in a newspaper are part of the newspaper. The plaintiff contends that they are and that they are therefore exempt from the use tax, pursuant to TCA § 67-6-329(a)(3). The Chancellor held that the supplements are not part of the newspaper and thus subject to the use tax. In its first issue, Sears contends this was error.

Sears, Roebuck & Company is a New York corporation which…