In McGraw-Hill, Inc. v. State of New Jersey, Department of the Treasury, Division of Taxation (1987) 9 N.J. Tax 372, the taxpayer, McGraw-Hill, purchased book components outside of New Jersey, which components were made into books and stored as inventory in McGraw-Hill's New Jersey warehouse and held for resale. No sales or use tax was paid on this basis. McGraw-Hill thereafter donated the books to a charitable organization. After the director, division of taxation imposed a deficiency use tax assessment on McGraw-Hill on the cost of the books so donated, McGraw-Hill brought an action contesting the tax. One of its many arguments was that if the transactions were gifts, then any gifts to out-of-state charities did not take effect in New Jersey, and therefore they were not subject to use tax by New Jersey. (Id. at p. 379.) New Jersey defined "use" as "the exercise of any right or power over tangible personal property by the purchaser thereof and includes, but is not limited to, the receiving, storage or keeping or retention for any length of time, withdrawal from storage, any distribution, any installation, any affixation to real or personal property, or any consumption of such property." (N.J. Stat. Ann. 54:32B-2(h).) Use tax in New Jersey is imposed on property which has not already been or will be subject to sales tax, except that "the mere storage, keeping, retention or withdrawal from storage of tangible personal property by the person who manufactured, processed or assembled such property shall not be deemed a taxable use by him." (N.J. Stat. Ann. 54:32B-6.) The court in McGraw-Hill made the following salient observations: "It is important to recognize the difference between the sales tax and the use tax. Sales tax is imposed on a commercial transaction, a purchase for consideration. The use tax is a tax complementary to the sales tax as an aid to its enforcement. It is a tax on possession and enjoyment of that which was purchased and for which no sales tax was paid. "The subject case turns neither on the nature of the gifts nor the fact that some gifts were made to out-of-state donees, but on the fact that a change of intention occurred in New Jersey, manifested by taxpayer's withdrawal of tangible personal property from storage for gift, rather than resale, purposes. This change of intent was evidenced by instructions to the Hightstown distribution center to segregate the books and have them shipped to the charitable donee, and the carrying out of these instructions by taxpayer taking all steps necessary in New Jersey to complete the gifts. So long as the books were held in inventory with the intent to resell, they were not subject to use tax, but once taxpayer took steps to use the books for gift purposes, they were removed from the protection of 2(e) and became subject to use tax under 6. "Section six provides that 'mere storage, keeping, retention or withdrawal from storage of tangible personal property by the person who manufactured, processed or assembled such property shall not be deemed a taxable use by him.' Emphasis omitted. This wording indicates that goods placed in storage or withdrawn from storage are not subject to use tax. But, these words must be read in the context of the entire act, and particularly 2(h), which includes storage or withdrawal from storage in the definition of 'use.' Placing in or removing from storage within the resale chain (for instance removal for transfer to another warehouse, or to a distributor or retailer) is not a taxable event, but removal from storage for the purpose of using the property subjects the user to use tax. The word 'mere' limits the nontaxable status. In this case the withdrawal is not a 'mere' withdrawal but is coupled with instructions to remove from storage and the removal from storage and delivery of the books to a common carrier for shipment for a non-resale purpose. "Although it may appear severe to impose a use tax on a gift, this treatment is consistent with statutory requirements. If I give tangible personal property, for instance, a television set, to a charity, I must pay a sales tax when I acquire the set. The fact that I could have restructured the hypothetical transaction and given cash to the charity, and the charity could then have purchased a television set without paying a sales or use tax, does not justify a finding in the subject case that no use tax is due. Further, if a manufacturer of television sets withdraws a set from its warehouse for its own use, whether it be for use in an employees' lounge or to be given away for promotional purposes or to a charity, a use tax must be paid on this withdrawal if no sales tax was paid by the manufacturer on the purchase of the component materials. The product is no longer being held for resale and therefore is not exempt from tax on the purchase, either as a finished product or as component parts or raw materials. This is the scheme of the Sales and Use Tax Act. "In the subject case, taxpayer is giving tangible personal property to a charity without having paid sales tax to acquire the property. I conclude that the withdrawal of the books from inventory for the purpose of making a gift and the delivery of the books to the common carrier for shipment to the donee are the events which subject the donated books to use tax. The fact that some books were shipped out of the state, where title passed, does not affect this taxability since the devotion to the non-resale use occurred in New Jersey. "Taxpayer's contention that no use tax can be imposed by New Jersey because the books are shipped by common carrier and insured by taxpayer during transit, with title passing on receipt in the donee's state, is grounded in Commerce Clause concepts which apply to sales to out-of-state customers. The Commerce Clause is concerned primarily with the avoidance of multiple or burdensome taxation on interstate commerce. In the subject case, there is no allegation that a sales or use tax has been paid to any other state, either on the component materials or on the finished product. Normally, if there is no sale, no other state can impose a sales or use tax on the charitable donee. If, by reason of the passing of title in another state, a use tax is sought to be imposed on the taxpayer-donor, the principles of Complete Auto Transit, Inc. v. Brady, 430 U.S. 274 (1977), reh'g den. 430 U.S. 976 (1977), would be applicable. Since a use tax has been imposed by New Jersey on the donor, presumably the tax credit provision of the sales and use tax act of the donee's state would prevent multiple taxation of the donor. If the donee's state has no tax credit provision, there would be a serious doubt as to the validity of that state's sales and use tax act because it would not be 'fairly apportioned' as required by Complete Auto. See KSS Transp. Corp. v. Taxation Div. Dir., 9 N.J. 273 (Tax Ct. 1987) (Appellate Division appeal pending)." (McGraw-Hill, Inc. v. State of New Jersey Deprtment of Treasury, Division of Taxation, supra, 9 N.J. Tax at pp. 382-384.)