Tax Article - Massachusetts Sales Tax Exemptions On Direct Mail Advertising Material Following The Bloomingdale Case

Effective from August 9, 2004 various direct mail advertising materials sent to customers are exempt from sales and use tax. However the legislature clarified specifically to exclude "mail order catalogs, department store catalogs, telephone directories, or similar printed advertising books, booklets or circulars greater than 6 pages in total length" from the exemption. 

For open tax periods prior to August 9, 2004, the Department will treat the exemption for "direct and cooperative direct mail promotional advertising materials" as including discount coupons, advertising leaflets and similar printed advertising such as mail order and department store catalogs that are mailed to a customer list using either the United States Post Office or other common carrier, without regard to the 6 page limitation applicable to periods after August 9, 2004. 

In order to be exempt, the materials must also meet all other requirements of the statute in effect for those periods. Telephone and other directories containing advertisements will not be treated as exempt for any periods either before or after the amendment. (See Verizon Yellow Pages v. Commissioner of Revenue).

This applies to all open tax periods. Taxpayers, including retailers or printers, who have remitted tax on materials that are exempt for the periods covered may file an application for abatement, Form CA-6, within the limitations period for filing such claims.

Find out how our tax expertise can add value to your business. Email us or call us at 1 (888) 875-9770.

related links