Section R15-5-158. Postage Stamps

A.      A retailer’s gross receipts from the sale of postage stamps are not included in the tax base under the retail classification if the stamps are sold for the purpose of transporting mail.

B.       A retailer’s gross receipts from the sale of postage stamps are included in the tax base under the retail classification if the stamps are sold for any purpose other than transporting mail.

C.      The Department shall presume that a postage stamp is sold for a purpose other than transporting mail if the postage stamp is sold for at least 50% more than its face value. A retailer may

overcome the presumption; however, the burden of proof will remain on the retailer.

D.      A retailer’s gross receipts from the sale of cancelled postage stamps are included in the tax base under the retail classifica- tion.

Historical Note

New Section adopted by final rulemaking at 6 A.A.R.

4112, effective October 4, 2000 (Supp. 00-4).