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 432.0042.800

432.0042.800 Financial Prospectuses. Financial prospectuses meet the definition of printed sales messages and are exempt if they are shipped by the seller or a mailing house acting on behalf of the purchaser to persons who acquire them at no cost. It makes no difference if the third party recipient is an underwriter, broker/dealer or investor.

Any prospectuses which the mailing house retains for possible future distribution, are subject to tax. The mailing house is not acting as an agent for purposes of mailing the prospectus. Rather, it is storing the prospectus for an undetermined period of time on behalf of the purchaser.

Prospectuses mailed by the mailing house to field agents of the purchaser, also do not qualify for the printed sales message exemption since the representatives are agents or employees of the purchaser. 3/29/89.