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 432.0064.400

432.0064.400 Magazine Inserts. High quality four color advertisements are printed for insertion into a magazine to look like an integral part of the magazine. The advertisements are purchased by A and printed by a California printer. The printer delivers the advertisements by common carrier to trade and consumer magazines which are distributed nationwide.

Assuming the inserts are advertisements for the promotion of goods or services, their sales would qualify for the exemption for sales of printed sales messages if they meet all of the criteria set forth in Regulation 1541.5. The printed sales messages are received at "no cost" for purposes of the regulation when they are inserted into a periodical which does not consist entirely of advertising. If the publication only advertises products and a charge is made to the customer, the printed sales message is not provided at "no cost." 1/5/94.