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 432.0061

432.0061 Homes for Sale Publication. An individual sells advertising, comprised of a narrative description of land or homes for sale (the description may be accompanied by a photograph) to realtors. The listings and photographs are consolidated into a publication. The rough layout is sent to a publishing company out of state for final layout and printing. The publication company sends the completed publications to an out-of-state airport where a delivery service picks up the publications and delivers them to various California businesses where the public may pick up a copy for free. The delivery service also delivers some copies to the individual.

The publication is printed to the special order of the customer, printed for the principal purpose of advertising or promoting goods or services, and a portion is delivered by common carrier to businesses where the consuming public becomes owner of the publication free of charge. Therefore, the copies which are distributed to the public are exempt from tax. As to the copies delivered to the individual, the printed sales message exemption does not apply because this transaction does not comply with the delivery requirements of the exemption statute. 6/6/88.