Did an every-other-week price/order book remain an exempt periodical after California amended Ruling 50 to exclude catalogs?

Plain-English summary

In 1952, California had told an unnamed requester that its price/order book, issued every other week, qualified as an exempt periodical under Ruling 50 as the rule then read.

After a broader review, California amended Ruling 50 on March 9, 1966 following publication and notice. The new definition required each issue to contain news or information of general interest and expressly excluded catalogs.

The June 1966 letter therefore rescinded the February 18, 1952 ruling. Charges to users for the price/order books were taxable, as were printing charges to grocers or other businesses acquiring them for use. Those charges had to be included in the measure reported on sales and use tax returns.

Source and live-annotation limits

The official PDF describes but does not include the February 7, 1952 inquiry, February 18 response, price/order books, or enclosed amended Ruling 50. It identifies no requester, user, grocer, business, or printer and supplies no publication, print order, invoice, return, assessment, refund, or later outcome.

The live annotation says price/order books issued quarterly or more often do not qualify under section 6362. It omits the source's every-other-week frequency, 1952 inquiry and favorable letter, March 9, 1966 Ruling 50 amendment, publication-and-notice history, express rescission, user and business-use printing consequences, reporting instruction, missing records, and no-outcome limit. Section 6362 appears on the live page but not in the supporting letter.

What this means for you

Catalog publishers, printers, and tax professionals

Publication frequency alone did not overcome the catalog exclusion. Check the current definition and preserve prior rulings, amendment dates, product contents, purchaser use, printing invoices, and return treatment.

Common questions

Q: Had California previously treated the price/order books as exempt?

A: Yes, in a February 18, 1952 letter.

Q: Why did the result change?

A: Amended Ruling 50 required general-interest information and expressly excluded catalogs.

Q: What happened to the 1952 letter?

A: The June 1966 letter expressly rescinded it.

Q: Did the tax apply only to sales of finished books?

A: No. The source also applied tax to printing for grocers and other businesses acquiring the books for use.

Citations and references

• California Sales and Use Tax Ruling 50, Newspapers and Periodicals — cited and enclosed but absent
• California Revenue and Taxation Code § 6362 — cited on the live annotation page, not in the supporting letter
• February 7, 1952 inquiry and February 18, 1952 letter — described but not included
• Books, users, printer transactions, invoices, returns, tax records, and outcomes — described or implicated but not documented

Verbatim support

From the official tax-counsel letter:

It also specifically excludes "catalogs" from the definition.

You are, accordingly, notified that our letter ruling of February 18, 1952, is rescinded.

Accordingly, the tax is app1icable to charges to users tor the publications in question, or for the printing of the publications for those grocers or other business firms acquiring them for use from printers and such charges should be included in the measure of tax reported with sales and use tax returns.

Source

• Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
• Annotation page: Annotation 385.0120
• Original supporting opinion: 385.0120 PDF

Original ruling text

385.0120

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

June 16, 1966

Gentlemen:
Under date of February 18, 1952, we informed you by letter in answer to your inquiry of February 7, 1952, that your price/ order book, issued every other week, would be regarded as a periodical exempt from sales tax under sales and use tax ruling 50 as it than read. A recent review of the entire subject of the application of sales and use taxes to periodicals leads us to the conclusion that such publications as price/order books may no longer be considered exempt periodicals. Sales and use tax ruling 50, Newspapers and Periodicals, was recently amended to provide n more comprehensive and specific definition of a periodical than the prior ruling which defined the term in most general language. The current ruling, which was adopted in amended form March 9, 1966, following publication and notice as required by law, is far more specific in its definition of the term "periodical." A copy of the ruling is enclosed. You will note that the term is limited to those publications which appear at stated intervals, "each issue of which contains news or information of general interest to the public or to some particular organization or group of persons." It also specifically excludes "catalogs" from the definition. We are of the opinion that our previous position that these price/order books were within the exemption can no longer be justified You are, accordingly, notified that our letter ruling of February 18, 1952, is rescinded. Accordingly, the tax is app1icable to charges to users tor the publications in question, or for the printing of the publications for those grocers or other business firms acquiring them for use from printers and such charges should be included in the measure of tax reported with sales and use tax returns.

Very Truly Yours,

James W. Tieman
Tax Counsel
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