In Re the Appeal of K-Mart Corp.

The opinion of the court was delivered by

Holmes, J.:

The Kansas Department of Revenue (KDR or Department) appeals from an order of the State Board of Tax Appeals (BOTA) holding that advertising supplements of K-Mart Corporation (K-Mart) distributed in local newspapers across the state are not subject to the Kansas compensating or use tax set forth at K.S.A. 79-3701 et seq.

*394K-Mart contested the KDR assessment of $25,198.00 tax and $9,165.00 interest for the period January 1, 1980, through December 31,1982. Upon appeal that assessment was abated by the BOTA. The KDR appealed that decision to the…