Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
385.0000 NEWSPAPERS AND PERIODICALS—Regulation 1590
(b) ADVERTISING MEDIA
385.0739 Advertising Inserts. A firm is a publisher of the following advertising inserts which it prints and delivers:
Mail Marketplace I. Mail Marketplace I is delivered by direct mail through the post office each Wednesday to thousands of households, together with advertising inserts, for free. Even without counting the advertising inserts, the advertising portion exceeds 90% of the printed area of the entire issue. This publication does not qualify as a "newspaper" nor a "periodical." The publisher is the consumer of, and the tax applies to the sale to the publisher of, tangible personal property used in producing this publication.
The sale of the inserts by the printer to an advertiser qualifies for the exemption for printed sales messages, section 6379.5, when it places the inserts in Mail Marketplace I and mails the entire package to the household.
Mail Marketplace II. Mail Marketplace II is delivered by direct mail through the post office each Wednesday to house holds for free. As the advertising portion exceeds 90% of the printed area, this publication does not qualify as a "newspaper" nor a "periodical." The printer is the consumer of tangible personal property used in producing this publication.
Discover the Delta. Discover the Delta is printed monthly and inserted in paid subscription newspapers and also periodicals distributed free of charge. The editorial portion exceeds 10% of the printed area. This publication qualifies as a periodical, section 6362.7. Any tangible personal property that becomes an ingredient or component part of this publication is exempt from tax whether it is distributed alone without charge or with copies of Mail Marketplace I. 7/7/93.