Opinion ID: 2168802
Heading Depth: 1
Heading Rank: 4

Heading: analysis

Text: The audit period for sales and use taxes for Affiliated Foods ran from March 1, 1990, to February 28, 1993. During that period, there were minor substantive changes to the language of the relevant statutory provisions, as well as changes to the statute's numbering scheme. These changes, however, do not have a material impact on the outcome of this appeal. For the sake of clarity, therefore, we will refer to the statutory provisions as they existed in 1993, the end of the audit period. Whether Affiliated Foods is liable for sales tax on postage charges depends on the meaning of the term cost of transportation, found in the statutory definitions of gross receipts and sales price. See Neb.Rev.Stat. § 77-2703 (Cum.Supp. 1992). Interpretation of a statute presents a question of law. In re Interest of Joshua M. et al., 256 Neb. 596, 591 N.W.2d 557 (1999). Under § 77-2703(1), sales tax is imposed upon the gross receipts from all sales of tangible personal property sold at retail in this state. Gross receipts, in turn, are determined according to the total amount of the sale price of the retail sales of retailers. § 77-2702.07(1). The gross receipts, § 77-2702.07, and sales price, § 77-2702.17, both include the cost of transportation of the property sold. If postage charges are a cost of transportation, then postage is included in the sales price and gross receipts. Thus, Affiliated Foods is liable for sales tax on postage if it is a cost of transportation.