Tax Type
Retail Sales and Use Tax
Description
List of Exemptions, Exceptions and Exclusions
Topic
Exemptions
Date Issued
08-13-1998
August 13, 1998
Request for Ruling: Retail Sales and Use Tax
Dear *****
This is in reply to your letter of July 27, 1998, in which you request a ruling regarding the application of Virginia's retail sales and use tax to two products produced by ***** (the "Taxpayer').
FACTS
Security Owner's Stock Guide provides investment data for more than 5,900 common and preferred stocks. It also includes a special section on the performance of more than 700 mutual funds. It is published monthly and is also available as a database. Stock Market Encyclopedia includes information on 750 of the most actively traded stocks and is published quarterly.
You ask if these products qualify for the publications exemption under Code of Virginia Sec. 58.1-609.6(3).
RULING
Code of Virginia Sec. 58.1-609.6(3) exempts from the retail sales and use tax subscriptions to any publication issued daily, or regularly at average intervals not exceeding three months.
The department has traditionally relied on the definition of "publication' as upheld by the Virginia Supreme Court in Jefferson Publishing Corporation v. Tax Commissioner, 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 the information provided, both the Security Owner's Stock Guide and Stock Market Encyclopedia qualify for the publications exemption found in Code of Virginia Sec. 58.1-609.6(3). Both products are issued at average intervals not exceeding three months and are periodicals available for general distribution to the public. Accordingly, subscription sales of these publications are not subject to Virginia's retail sales and use tax.
Please note that only subscription sales of publications are exempt; newsstand sales or other sales at retail are subject to the tax. If you have any questions regarding this matter, you may contact ***** of the department's Office of Tax Policy at******
Sincerely,
Request for Ruling: Retail Sales and Use Tax
Dear *****
This is in reply to your letter of July 27, 1998, in which you request a ruling regarding the application of Virginia's retail sales and use tax to two products produced by ***** (the "Taxpayer').
FACTS
Security Owner's Stock Guide provides investment data for more than 5,900 common and preferred stocks. It also includes a special section on the performance of more than 700 mutual funds. It is published monthly and is also available as a database. Stock Market Encyclopedia includes information on 750 of the most actively traded stocks and is published quarterly.
You ask if these products qualify for the publications exemption under Code of Virginia Sec. 58.1-609.6(3).
RULING
Code of Virginia Sec. 58.1-609.6(3) exempts from the retail sales and use tax subscriptions to any publication issued daily, or regularly at average intervals not exceeding three months.
The department has traditionally relied on the definition of "publication' as upheld by the Virginia Supreme Court in Jefferson Publishing Corporation v. Tax Commissioner, 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 the information provided, both the Security Owner's Stock Guide and Stock Market Encyclopedia qualify for the publications exemption found in Code of Virginia Sec. 58.1-609.6(3). Both products are issued at average intervals not exceeding three months and are periodicals available for general distribution to the public. Accordingly, subscription sales of these publications are not subject to Virginia's retail sales and use tax.
Please note that only subscription sales of publications are exempt; newsstand sales or other sales at retail are subject to the tax. If you have any questions regarding this matter, you may contact ***** of the department's Office of Tax Policy at******
Sincerely,
Rulings of the Tax Commissioner