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 385.0238


385.0238 Experiment Kits Sold as Part of Magazine. A taxpayer publishes a monthly education magazine for students. The magazine has articles on various subjects designed to educate children in problem solving and other academic skills. Each issue includes an experiment to be completed and a kit with the materials necessary to complete the experiment. The experiment kit includes such items as plastic test tubes, racks, tiny aquariums, stands, droppers, etc. The magazine and experiment kit are sent to a subscriber in one package. After completing the experiment, the subscriber completes the experiment report and mails it back to the taxpayer. The taxpayer reviews the experiment reports and sends comments back to the subscribers. The magazine, the experiment kit, and the experiment reports are all included in one subscription price.

The magazine meets the criteria of a "periodical" under the sales and use tax. However, the experiment kit is not exempt as a component part of the periodical. Component parts of periodicals refer to such items as ink, paper, staples, etc., and not to other types of property which may be packaged with and sold together with the periodical itself. Therefore, tax applies to that portion of the taxpayer's entire charge which is attributable to the value of the experiment kit itself. 6/2/89.