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 385.0299


385.0299 Manual Revisions and Newsletter. A taxpayer publishes a book which sells for $27.50 and on which he reports sales tax. The taxpayer also provides an optional updating service for purchasers of the book which consists of a quarterly newsletter and annual revisions to the manual. The cost of both of these services is $20.00 per manual.

The newsletter qualifies as an exempt "periodical" since it is issued quarterly and contains news or information of interest to subscribers. However, the annual revision to the manual cannot be classified as a "periodical" as it is only issued once each year and is substantially different in style and format from the quarterly newsletter.

Since a single charge of $20.00 per year is made for the newsletter and annual revision, an allocation should be made between the exempt newsletter and manual revision. In this case, the measure of tax may be determined based on an allocation of the cost of the two items. 3/7/73.

(Note: Subsequent statutory changes re taxation of periodicals.)