Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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430.0000 PRINTING AND RELATED ARTS—Regulation 1541

Annotation 430.0228.200

(a) IN GENERAL—ACTIVITIES CONSIDERED SERVICES OR SALES.

430.0228.200 Stamps and Stamped Envelopes. A taxpayer will be selling at retail stamps and stamped envelopes over the counter and through vending machines. The stamps will be contained in folders or wrappers. The stamped envelopes will be either postage imprinted envelopes purchased from the United States Postal Service or envelopes purchased from private vendors upon which stamps are attached. All stamps and stamped envelopes are sold for purposes of postage and not for the purpose of stamp collection.

When a person purchases stamps for the purpose of postage, the true object is to obtain the performance of postal service. Gross receipts from the sale of U.S. Postal Service stamps sold for the purpose of postage are not subject to tax. The folders or wrappers containing the stamps are "containers." Since the sale of postage stamps for postage is not subject to tax, neither is the sale of containers holding those stamps. (Section 6364(b).)

Envelopes are tangible personal property the retail sales of which are subject to tax. The face value of the postal charges, whether in the form of stamps attached to envelopes or postage imprinted on envelopes by the Postal Service, may be subtracted from the taxpayer's taxable gross receipts.

Sales tax applies to sales through vending machines of stamps and stamped envelopes in the same manner as discussed above. 3/12/87.