Ezel / Tax Rulings / CA

Were circulars with directions and advertising for four products resold when enclosed with only one product?

Short answer No. Because each circular advertised the other three products not in the box, the source treated it as primarily advertising material used by the manufacturer, making the sale of the circulars taxable.
State
CA
Ruling
Annotation 280.0480
Tax type
Sales and Use Tax
Issued
1954-05-11
Issued by
California State Board of Equalization
Requested by
A manufacturer enclosing one circular with each product (identity redacted)
Topics
advertising circulars retail sales
Source
View Original PDF

Apply this to your situation

This page answers the general question as of 1954. Ask about yours and see what current California tax law says, with citations.

Currency note: this ruling is from 1954
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 May 11, 1954 assistant-counsel letter classifies a four-product circular enclosed with a one-product box as primarily advertising. The PDF does not reproduce the undated-year March 1 request, product boxes, labels, circular edition, print order or invoice, distribution records, returns, or tax computations. CDTFA's current annotation generalizes the PDF's four named nail-care products and supplies no additional source record. Another taxpayer should check current package-insert, instruction-sheet, mixed-content, advertising-material, manufacturer-consumer, resale, printed-matter, recordkeeping, and sales-and-use-tax law. Another taxpayer should not treat it as binding. This summary is informational only and is not legal or tax advice.
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 manufacturer placed a circular in every product box. The circular contained directions and advertising for four different products, but each box held only one of them.

For any particular package, the circular therefore advertised the other three products. The letter classified it as primarily advertising material used by the manufacturer.

The manufacturer's purchase of the circulars was consequently taxable rather than a purchase of material resold with the packaged product.

Citations and references

  • The source letter cites no statute or regulation by number.
  • March 1 inquiry — question described; year, letter, and attachments not reproduced in the official PDF
  • Multiproduct circular containing advertising and directions for four named nail-care products — edition date and copy not included in the official source
  • One circular enclosed per box, four listed nail-care products, one product per box, and advertising for the other three products — facts recited; product boxes, labels, circular edition, print order and invoice, distribution records, and tax records not reproduced in the official PDF
  • Official Annotation 280.0480's four-product directions, single-product box, other-product advertising, manufacturer use, and taxable-sale summary — annotation generalizes the named products and supplies no additional circular, packaging, purchase, or implementation record
  • Possible later circular purchase, product distribution, return filing, audit, assessment, payment, refund claim, appeal, or other agency action — not supplied in the official PDF

Source

Original ruling text

280.0480

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

May 11, 1954

T--- Laboratories
XXXX --- Avenue
--- XX, California

Your letter of March 1

Attention: Mr. J. W. M---

Account No. SR -- XX XXXXXX

Gentlemen:
You inquire concerning the application of sales tax to the sale to you of circulars, one of which you enclose in every box of your product. The circular contains both advertising material and directions for use on all four of your products, namely, T--- oily --- Nail Conditioner, T--- Oily Polish Remover, T--- Cuticle Remover, and T--- Cuticle Remover with Self-Feeding Cuticle Shaper. However, the circular is enclosed in a box which contains only one of these four products and in any given case is clearly advertising as to the other three. It is our opinion that the circular is primarily advertising and is therefore used by you. Accordingly, the tax applies to the sale to you of these circulars. Very truly yours,

Bill Holden
Assistant Counsel

BH:ja
cc:

--- --- - Auditing

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