92-233 | Virginia Tax

Tax Type

Retail Sales and Use Tax

Description

Publishing and Broadcasting; General Reference Materials

Topic

Taxability of Persons and Transactions

Date Issued

11-09-1992

November 9, 1992

Dear***********

This will reply to your letter of February 20, 1991 in which you seek a ruling on the taxability of various "periodicals" subscribed to by***********(the "Taxpayer").

RULING

Va. Code §58.1-608(A)(6)(c) provides an exemption from the sales and use tax for:

- [a]ny publication issued daily, or regularly at average intervals not exceeding three months, and advertising supplements and any other printed matter ultimately distributed with or as a part of such publications, except that newsstand sales of the same are taxable.

Virginia Regulation (VR) 630-10-73 defines "publication" as "any written compilation of information available to the general public," and provides that the term does not include general reference materials and their periodic updates. Thus, any publication, other than a general reference material and its periodic updates, which is published at least four times a year, available to anyone (availability not restricted to a particular group), and containing a written compilation of information qualifies for the above exemption.

The department has previously ruled that Standard and Poor's and Moody's reference volumes, loose leaf reference volumes published annually and updated biweekly or periodically, (Ruling of the Tax Commissioner dated January 25, 1982, copy enclosed) do not qualify as exempt publications.

A review of the various "periodicals" provided reveals that the majority do qualify as exempt "publications." However, some, including Moody's Public Utility, Public Utility Reports, West's Pacific Reporter, Federal Supplement, Federal Reporter, and Bankruptcy Reporter, the United States Patents Quarterly, and the Fourth Circuit Review, fall within the category of general reference materials and thus are taxable.

Official government documents such as the Congressional Record and the Federal Register are exempt from the tax; however, federal codes, regulations, and similar materials are taxable. This is consistent with the department's policy with respect to sales of official documents and records by the state and local governments as set forth in Virginia Regulation (VR) 630-10-45. (See also P.D. 86-15 (1/7/86), copy enclosed) While the state cannot constitutionally require the collection of the tax by the federal government, purchasers of such materials are required to remit use tax directly to the department.

In addition, while subscription sales of publications as defined in VR 630-10-73 are exempt from the tax, purchases of back copies of exempt publications are taxable.

Accordingly, I am referring this matter to the*********** District Office for resolution of the outstanding assessment relating to publications. You will be hearing from them shortly.

Please note that the department is in the process of reviewing its publications regulation and that you will be apprised of any potential changes and will have an opportunity to offer comments.

Sincerely,

W. H. Forst
Tax Commissioner

OTP/5473H

Rulings of the Tax Commissioner