Tax Type
Retail Sales and Use Tax
Description
Publishing and broadcasting; Lien newsletters
Topic
Taxability of Persons and Transactions
Date Issued
03-29-1996
March 29, 1996
Re: Request for Ruling: Retail Sales and Use Tax
Dear******
This will reply to your letter in which you request a ruling on the application of the retail sales and use tax to newsletters produced and sold by ******(the "Taxpayer") .
The Taxpayer publishes five different monthly newsletters, each tailored to the specific geographical requirements of its subscribers. The Taxpayer obtains a short synopsis of recorded lien information from the clerk's office of selected counties and cities and publishes the information monthly. No information in any one issue relates to the previous month's information (i.e., it is not an update and the information is not cumulative), there are no advertisements, and on occasion the newsletter contains articles and legislative updates dealing with relevant law changes. The newsletter is available to the general public and is sold only on a subscription basis.
You request a ruling on the availability of the exemption provided under Code of Virginia § 58.1-609.6(3) to the Taxpayer's newsletter.
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..., except that 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 information provided, the newsletter is a publication as defined in Jefferson and satisfies the criteria in Code of Virginia § 58.1-609.6(3). The newsletter is available for general distribution to the public and meets the interval test provided in the statute. Therefore, subscription sales of the newsletter qualify for exemption from the tax. However, sales of the newsletter at retail are subject to the tax.
If you have any questions regarding this ruling, you may contact*****at ***** .
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/8991F
Re: Request for Ruling: Retail Sales and Use Tax
Dear******
This will reply to your letter in which you request a ruling on the application of the retail sales and use tax to newsletters produced and sold by ******(the "Taxpayer") .
FACTS
The Taxpayer publishes five different monthly newsletters, each tailored to the specific geographical requirements of its subscribers. The Taxpayer obtains a short synopsis of recorded lien information from the clerk's office of selected counties and cities and publishes the information monthly. No information in any one issue relates to the previous month's information (i.e., it is not an update and the information is not cumulative), there are no advertisements, and on occasion the newsletter contains articles and legislative updates dealing with relevant law changes. The newsletter is available to the general public and is sold only on a subscription basis.
You request a ruling on the availability of the exemption provided under Code of Virginia § 58.1-609.6(3) to the Taxpayer's newsletter.
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..., except that 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 information provided, the newsletter is a publication as defined in Jefferson and satisfies the criteria in Code of Virginia § 58.1-609.6(3). The newsletter is available for general distribution to the public and meets the interval test provided in the statute. Therefore, subscription sales of the newsletter qualify for exemption from the tax. However, sales of the newsletter at retail are subject to the tax.
If you have any questions regarding this ruling, you may contact*****at ***** .
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/8991F
Rulings of the Tax Commissioner