Tax Type
Retail Sales and Use Tax
Description
Publishing and broadcasting; Subscription sales
Topic
Taxability of Persons and Transactions
Date Issued
06-26-1996
June 26, 1996
Re: Request for Ruling: Retail Sales and Use Tax
Dear****************
This is in response to your letter of April 13, 1995, requesting a ruling regarding the application of the retail sales and use tax to the two publications described below. I apologize for the length of time it has taken to respond to your letter.
FACTS
******** (Publication #1) and *****(Publication #2) are both written compilations of information available to anyone by subscription for a fee. These publications are designed to provide accurate and authoritative information regarding the content covered. They are prepared in an article format and consist of noteworthy current developments of the judicial system. Consumers use these publications to keep abreast of issues but generally do not keep them for extended periods of time due to the constantly changing nature of the subject matter.
RULING
Code of Virginia § 58.1-609.6(3) provides an exemption from the retail sales and use tax for "[a]ny publication issued daily, or regularly at average intervals not exceeding three months...however, newsstand sales of the same are taxable." A publication is defined as "a newspaper, magazine or other periodical which is available for general distribution to the public". Jefferson Publishing Corporation v. W.H. Forst, State Tax Commissioner, 217 Va. 988, 234 S.E.2d 297 (1977).
Based on the foregoing and the facts presented, Publication #1 and Publication #2 fall under the above definition as publications available for general distribution to the public and meet the interval test provided in the statute. Accordingly, subscription sales of these publications qualify for exemption from the tax; however, sales of these publications at retail are taxable.
If you have any questions about this matter, please contact********* at ******.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/9615R
Rulings of the Tax Commissioner