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 385.0730


385.0730 Advertising Inserts. A firm contracts with a client to print weekly advertisements. The bulk of these advertisements will be inserted in daily newspapers for general circulation. Most of the newspapers will be sold by newspaper companies, however, some newspapers may be of the kind distributed without charge. A small number of the advertisements will be delivered to the client's location for direct customer use.

The firm's receipts from the client are nontaxable if the client purchases the inserts to incorporate as a component part of a newspaper which will be sold notwithstanding that the client is not the seller of the newspaper. The firm's receipts also are exempt when the firm sells the inserts to the client to be incorporated as a component of a copy of a newspaper regularly issued at average intervals not exceeding three months when the copy of the newspaper is distributed without charge. Tax applies to the receipts for the advertising inserts delivered to the client's locations in this state for direct customer use. 2/8/93.