Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2014
Sales and Use Tax Annotations
432.0000 PRINTED SALES MESSAGES—Regulation 1541.5
432.0071.400 Principal Purpose—Contest. A firm distributes a mailer which promotes/solicits a contest and contest prizes through the use of 900 telephone numbers. It also distributes discount coupons with the mailer. In order to determine whether the "principal purpose" of the mailer is for "advertising or promoting goods and services," the entire scope of the program must be analyzed. It is conceded that the offer of a 900 telephone number is a "service." The contest number is merely a gimmick to (1) sell its 900 number services and (2) distribute discount coupons so its client-retailer-marketer can promote its products and services. Thus, although the manner in which the 900 number is promoted is not immediately apparent, the mailer pushes the use of the 900 number as the preferred method of response. As such, its principal purpose is to advertise and promote services and the mailer thus qualifies as a printed sales message. 12/31/96.