Ind. Dep’t of State Revenue v. AOL, LLC

Under a complex series of arrangements with companies like paper suppliers, printers, and packagers, AOL procured promotional mailers it sent to Indiana residents. AOL filed with the Indiana Department of State Revenue claims for refund of use taxes it paid between 2003 and 2007. The Department denied the claims. The tax court reversed, holding that AOL did not purchase any tangible personal property in a retail transaction with either the assembly houses or letter shops but merely purchased assembly, printing, and mailing services. At issue on appeal was the use tax, which applies to storing, using, or consuming in Indiana tangible personal property acquired in a retail transaction regardless of where that transaction occurred or where the retail merchant was located. The Supreme Court reversed the tax court, holding that because the assembly houses and letter shops were selling at retail, the transactions between AOL and its assembly houses and letter shops constituted retail transactions that triggered Indiana's use tax once AOL used the property in Indiana. View "Ind. Dep't of State Revenue v. AOL, LLC" on Justia Law