Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2016
Sales and Use Tax Annotations
385.0000 NEWSPAPERS AND PERIODICALS—Regulation 1590
(b) ADVERTISING MEDIA
385.0740 Advertising Inserts in Taxable Shopper and Exempt Newspaper. A newspaper publisher prints both a tax-exempt daily newspaper sold to subscribers, and a taxable weekly shopper distributed free only to non-subscribers. Where another printer prints advertising inserts for an advertiser and, at the direction of the advertiser, transfers the inserts to the newspaper publisher to be included in the weekly shopper, tax applies to that printer's charges to the advertiser. Likewise, the newspaper publisher is liable for tax on its printing charges if the publisher transfers advertising inserts to a second publisher to be included in the second publisher's taxable weekly shopper. Where copies of the same advertising inserts become component parts of the daily newspaper, the printer may regard those copies as exempt if it obtains documentation regarding the proportion of copies included in the exempt newspaper to the copies included in the taxable weekly shopper. 5/11/88.