Ezel / Tax Rulings / CA

Did a California independent contractor soliciting magazine advertising for many clients make the publisher engaged in business?

Short answer No under the limited 1964 memorandum. The contractor's office was not the publisher's office, and advertising solicitation did not satisfy the tangible-property representative test then applied.
State
CA
Ruling
Annotation 220.0160
Tax type
Sales and Use Tax
Issued
1964-08-26
Issued by
California State Board of Equalization
Requested by
Out-of-State Compliance staff whose July 28 memorandum asked about company "P" and its independent advertising representative
Topics
magazine publisher independent contractor representative
Source
View Original PDF

Apply this to your situation

This page answers the general question as of 1964. Ask about yours and see what current California tax law says, with citations.

Currency note: this ruling is from 1964
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This very short August 26, 1964 internal memorandum answers an Out-of-State Compliance memorandum dated July 28, which the official PDF does not reproduce. The source identifies the company only as "P" and says it does not appear to be engaged in business under the then-applied section 6203(a) and (b) tests. It supplies no company identity, request details, contract, client list, compensation, publication-sale record, activity record, or later agency action. The official annotation page, rather than the PDF, identifies the company as a magazine publisher and calls advertising solicitation its only local activity. Current law and complete facts control.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.
View original ruling (PDF)

Plain-English summary

A magazine publisher's only described California activity was advertising solicitation by an independent contractor who represented numerous clients.

California said the contractor's office did not satisfy the office test in section 6203(a), and soliciting advertising did not satisfy the tangible-property representative test in subdivision (b) under the limited historical analysis.

The memorandum therefore concluded the publisher did not appear to be engaged in business in California on those facts.

Common questions

Was the contractor's office treated as the publisher's office?

No.

Did the memorandum address product or subscription solicitation?

No. It addressed advertising solicitation only.

Citations and references

  • California Revenue and Taxation Code section 6203(a)–(b)
  • Out-of-State Compliance's July 28 memorandum — request memorandum not reproduced in the official PDF
  • Company "P," its independent contractor's office, multiple clients, and advertising solicitation — facts stated; company identity, contract, client list, and activity records not reproduced in the official PDF

Source

Original ruling text

State of California

Board of Equalization

Memorandum

To:

Out-of-State – Compliance (DLF)

From:

Tax Counsel (PM)

Subject:

“P”

220.0160

August 26, 1964

In reply to your memo of July 28, the above company does not appear to be “engaged in business in this state” within the meaning of Section 6203. An office of an independent contractor who represents numerous clients would not meet the requirements of paragraph (a). The solicitation of advertising by such a representative would not meet the requirements of paragraph (b).

PM:o’b

[1b]

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