Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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432.0000 PRINTED SALES MESSAGES—Regulation 1541.5

Annotation 432.0023.700

432.0023.700 Coupon Books. A firm designs and publishes a book of coupons. After receiving orders from clients to prepare a coupon, it prepares a rough layout of the coupon, obtains approval from clients, and then has a printer print pages containing coupons from several clients. The printer takes the finished coupon books to a carrier who takes the books to a mailing house for addressing. The mailing house then takes the coupon books to the U.S. Postal Service for delivery to households by zip code. The printer's sale is to the firm.

Since coupon books are printed for the principal purpose of advertising or promoting goods or services, they qualify as printed sales messages. If the households receive the coupon books free of charge, the requirements of section 6379.5 have been met and the printer's sales of the coupon books are exempt from sales tax. 9/20/94.