Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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P

432.0000 PRINTED SALES MESSAGES—Regulation 1541.5

Annotation 432.0005

432.0005 Annual Reports and Newsletters as Printed Sales Message. An organization publishes an annual report once a year and a newsletter twice a year. The publications serve both as a public record of the work of the organization and also as "sales" pieces to encourage prospective donors and grantees to take advantage of the services provided by the organization. The mailing lists for the publications consist of (1) current donors, (2) donor prospects, (3) foundation friends, e.g. past trustees and staff, (4) professional advisors, such as attorneys, etc., (5) current and prospective grantees, and (6) the general public.

The term "printed sales messages" does not include fund-raising materials; therefor, these publications do not qualify for the exemption. Since the annual report and the newsletters are not "regularly issued at regular intervals not exceeding three months," the sale to the organization of the annual report and the newsletters do not qualify for the exemptions for sales of newspapers or periodicals. 1/7/93.