Michigan Insurer Owes Use Tax on Printed Ads Sent Nationwide

AAA Life Insurance Co. failed to convince a state appeals court Thursday that it shouldn’t be charged Michigan use tax for mailed advertisements prepared out-of-state.

“In order to constitute a taxable use only some level of control is needed,” Michigan Court of Appeals ruled in an unsigned opinion. From Michigan, AAA controlled the content of the advertisements, reviewed proofs, contributed to mailing lists, and decided whether they were printed at all, the court said.

Michigan-based AAA asked the judges to overturn a claims court ruling that its control of the design stage of printed advertisements constituted a taxable use in ...