K Mart Corp. v. Idaho State Tax Commission

HUNTLEY, Justice.

In this case we determine whether an advertiser, which has its advertising supplements printed out-of-state and which then pays a newspaper to insert and deliver the supplements with the newspaper, is *720subject to payment of use tax on the cost of the purchase of the supplements from the printer.

K Mart Corporation creates “mats” from which an out-of-state printer prints newspaper advertising inserts. The printer ships the inserts to newspapers selected by K Mart. Through contracts with these newspapers K Mart designates the number of inserts to be distributed at any given time…