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 432.0073.001

432.0073.001 Promotional Material. Printed materials which are printed to the specifications of a car company, consist of letters, a brochure, and posters. Of the three letters enclosed, one was to the dealers introducing the company's new engine programs. One was a sample letter sent to the dealers which they can copy and send to their respective customers. This letter detailed the format of the new engine program by listing all the included components which comprise the replacement engines. The third letter introduces the car dealer parts manager to posters that can be displayed which advertise the company's automotive products. The brochure combines pictures and printed words announcing and detailing the company's new engine program. The posters consist of pictures of the company's automobile and accessories. One suggests the purchase of a car for Christmas while the other indicates that consumers can fulfill all their needs by shopping at the company's dealers. The printer also sells the car company envelopes and mailing tubes in which the letters, brochure, and posters are enclosed for mailing. The printer mails the envelopes and mailing tubes which enclose the letters, brochures, and posters to all the company's dealers.

The letters, brochures, and posters are printed sales messages. The principal purpose for each is to advertise or promote a good or service; they are mailed or delivered by the printer, the seller of the printed material; and they are received by persons at no cost. Additionally, the printer's sales of envelopes and mailing tubes are also exempt from tax since each are sold with the printed sales messages for shipment or delivery. 3/1/89.