Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2016
Sales and Use Tax Annotations
385.0000 NEWSPAPERS AND PERIODICALS—Regulation 1590
(a) IN GENERAL
385.0164 Complimentary Copies of Newspapers. Newspapers which generally are distributed for a charge are given free to full time employees, to sales representatives as samples to solicit sales, and to selected individuals and political organizations. Additionally, some copies are used internally by the publisher.
The distribution of complimentary copies does not result in a tax liability even though copies furnished to the employees may be pursuant to a union contract or the copies are intended for use to solicit sales.
If the copies "used internally" are distributed throughout the department for the benefit of individuals, such copies also do not result in a tax liability. However, if the copies are merely used by the employees in producing the newspaper, the publisher is the consumer of such copies and tax applies to the material cost. For example, the copies used by the ad department as "advertising tearsheets" are subject to tax on material cost. 12/7/93.