Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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385.0000 NEWSPAPERS AND PERIODICALS—Regulation 1590

Annotation 385.0167


385.0167 Component Part of Periodical. A market research and consulting firm publishes a newsletter, relating to the computer industry, which qualifies as an exempt periodical under Regulation 1590. A subscription for 12 issues per year sells for $360. This firm also publishes a publication which lists names, addresses, phone numbers and other identifying information for computer plant site location around the world. This latter publication is not an exempt periodical under Regulation 1590, and a subscription for 4 issues per year sells for $200. The firm offers its customers a package whereby for $400, customers would receive a year's subscription to its newsletter and a single copy of its publication. Since the publication is not an exempt periodical, the issue of whether it can be considered a component part of an exempt periodical when customers subscribe for the newsletter and the publication offered as a package.

The publication is not a component part of the newsletter since it is not attached to or inserted in the newsletter. Also, the first paragraph of subdivision (a)(3) of Regulation 1590, defines "component part" of a periodical to include "only those items that become physically incorporated into the publication . . . ." The publication is not physically incorporated into the newsletter and is therefore not a component part of the newsletter. 8/31/94.