Tax Type
Retail Sales and Use Tax
Description
Publishing and broadcasting; Quarterly magazine
Topic
Taxability of Persons and Transactions
Date Issued
06-28-1996
June 28, 1996
Re: Request for Ruling: Retail Sales and Use Tax
Dear**********
This will reply to a request from the department's****District Office on behalf of******(the "taxpayer") for a ruling on the application of the publication exemption to a magazine published and sold by you.
FACTS
The Taxpayer publishes a magazine that is sold on a quarterly subscription basis and at retail to the general public. The magazine contains written articles and advertising related to collecting.
RULING
Code of Virginia § 58.1-609.6(3) (copy enclosed) 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, and advertising supplements and any other printed matter ultimately distributed with or as part of such publications; however, newsstand sales of the same are taxable." This same section excludes the sale of back copies of publications by the publisher or an agent of the publisher from the definition of"newsstand sales."
The department has traditionally relied on the definition of "publication" as upheld by the Virginia Supreme Court in Jefferson Publishing Co. v. W.H. Forst, 217 Va. 988,. 234 S.E.2d 297 (1977), in determining whether various printed materials qualify as exempt publications. The court defined "publication" as a "newspaper, magazine or other periodical which is available for general distribution to the public."
Based on an examination of the Taxpayer's publication, the department finds that it would qualify as a periodical available for general distribution to the public and meets the interval test provided in the statute. Subscription sales of the Taxpayer's publication qualify for exemption from the tax; sales of the publication at retail are taxable.
Code of Virginia § 58.1-609.3(2)(v) (copy enclosed) provides an exemption for printing, equipment, and supplies that are used directly to produce a publication as defined above. The Taxpayer would also qualify for this exemption. You should provide Form ST-11 (copy enclosed) to your suppliers to make purchases of items qualifying for this exemption.
Based on information in the Taxpayer's publication, it appears the Taxpayer is advertising the sale of tangible personal property. Virginia Regulation (VR) 630-10-29.1 requires the Taxpayer to register as a dealer and collect sales tax on its Virginia sales of tangible personal property. As stated above, the Taxpayer is also required to collect and report the tax on newsstand sales of its publication. I have enclosed the necessary registration forms (Form R-1 and instructions) and a copy of the department's Virginia Sales and Use Tax Regulations to assist you with any questions you might have.
If you should need further guidance, please contact *** of Tax Policy at*********.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/10392S
Rulings of the Tax Commissioner