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 385.0771


385.0771 Coupon Insert. A taxpayer had a commercial printer print coupons which advertised the taxpayer's carpet and upholstery cleaning services. Once printed, the printer delivered the coupons to a binding company for attachment to the publication "TV Week." Once bound, the publication was sent to the newspaper company for delivery to the end recipient. At no point was any of the printed material sent to the taxpayer.

Since "TV Week" is part of the newspaper, the coupon becomes a component part of a newspaper. Thus, the sale of this coupon is not subject to sales tax. (Regulation 1590(a)(3).) The taxpayer should provide a timely certificate in writing to the seller (printer) that the property will be used in a manner or for a purpose entitling the seller to regard gross receipts from the sale to be nontaxable. (Regulation 1590(c).) 1/9/96.