Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
432.0000 PRINTED SALES MESSAGES—Regulation 1541.5
432.0001 Advertising Brochures. A publishing company markets its products by mailing advertising brochures to nurses and other health professionals. The company has an in-house printing and mailing division at the same location as the publishing division. The company prints some of its advertising brochures and then mails the brochures from its mailing house division to persons who become the owners of the brochures at no cost. In addition, some brochures printed by printers other than this company are delivered to and distributed by this company's in-house mailing division.
There has not been a sale of brochures in the transaction where the company prints and mails the brochures from its own in-house printing and mailing divisions since such a transaction between related entities does not constitute a sale. Since there has not been a sale of brochures, the exemption for printed sales messages is not available for this company. Further, the printed sales message exemption is not available where an outside printer (seller) sends the brochures to the in-house mailing division which is part of the purchasing company and not the company's agent. Since the brochures are delivered to the purchaser, the printed sales message exemption is not available to the seller. 4/21/88.