Foley & Lardner LLP Partner Lynn Gandhi, lead attorney advising Bed Bath & Beyond on its tax dispute over advertising materials sent to Michigan residents, was quoted in an article in Tax Notes, entitled “Michigan High Court Denies Review in Bed Bath & Beyond Tax Dispute”.
The appeals court said that the home furnishings retailer is not liable for the tax because its contract with the marketing agency, Harte Hanks Mailing House, ceded control over the materials and discretion over their transfers to the U.S. Postal Service.
“The court’s order was appropriate, given the facts of the case and Michigan’s prior precedence that has determined that the mere distribution of advertising, without more, does not constitute a taxable use,” Lynn shared.