Affiliated Foods Cooperative, Inc. v. State

This case presents the question whether charges for U.S. postage are a “cost of transportation” subject to Nebraska sales tax.

The appellants are the State of Nebraska, the Nebraska Department of Revenue (Department), and the State Tax Commissioner (collectively the State). The Department issued a deficiency assessment against Affiliated Foods Cooperative, Inc. (Affiliated Foods), for failure to collect sales tax on U.S. postage. Affiliated Foods used the postage to mail grocery advertisements to its members’ customers. The State Tax Commissioner sustained the deficiency assessment. On appeal,…