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 432.0024

432.0024 Customized Circulars. Members of a hardware cooperative organization are provided with a rough layout of an advertising circular along with inserts that may be substituted for the items included in the layout. Members use the optional inserts to customize the circular, making such changes as they wish with respect to products featured, prices, additional pages, etc. The printer is instructed to ship the circulars to the customer's store, a newspaper or a mailing house. Even though the circulars have been printed to the special order of the customer, and the contents meet requirements of the definition of "printed sales messages", those that are shipped to the customer's store are taxable, except for those subsequently forwarded to a newspaper publisher for inclusion and distribution with the newspaper. Those shipped by the printer directly to a newspaper are also not taxable. Conversely, circulars delivered to the customer's store and then forwarded to a mailing house for redelivery to any other person, who becomes the owner at no cost, are taxable. Those circulars delivered directly by the printer to a mailing house acting as agent of the customer are not taxable. 8/27/90.