A North Carolina tax hearing found that circulars distributed by a taxpayer were subject to sales and use tax. The taxpayer argued that the circulars did not constitute tangible personal property because they were distributed free to the public qualifying the circulars as advertising services and distributed the circulars from out of state. The hearing decided that the charges for the circulars were clearly a purchase of tangible personal property required for the taxpayer to fulfill their contract with their clients. (Secretary of Revenue Decision No. 2006-243, North Carolina Department of Revenue, January 11, 2007)