Were self-contained comic books without continuity of title and subject matter exempt periodicals?

Plain-English summary

California treated retail sales of comic books as taxable when each book was complete in itself and the books lacked continuity of title and subject matter. They were not periodicals under former Ruling 50, which the letter said exempted newspapers and periodicals regularly issued at average intervals not exceeding three months.

The same letter said paper bags and wrapping paper were exempt nonreturnable containers when the seller used them for merchandise sold together with the container. That result came from former Ruling 49.

Counsel could not classify a product the requester described as Turkish-type almond halvah without its wrapper or label describing the product and listing its ingredients. The letter also said former Ruling 52 gave general food-product guidance but that the Board had no itemized list of every exempt drugstore food.

Source and live-annotation limits

The official PDF describes but does not include the April 3, 1950 request, halvah wrapper or label, ingredient list, merchandise, or enclosed former Rulings 49, 50, and 52. It identifies no requester and supplies no comic-book issues, other publications, containers, food products, sale records, prices, invoices, returns, audit or assessment, follow-up classification, or later outcome.

The live annotation repeats only the comic-book result: books complete in themselves without continuity of title and subject matter are not periodicals, and their sale is taxable. It omits the April 3 request, the three former rulings and enclosures, the stated three-month interval, the halvah question and requested evidence, the container result, the missing drugstore-food list, and all source and outcome limits.

What this means for you

Book retailers, drugstores, and tax professionals

For a publication series, document continuing title and subject matter rather than relying only on frequent release. For other merchandise, preserve container use and product-ingredient evidence, and check current law rather than treating this 1950 letter as current authority.

Common questions

Q: Why were the comic books taxable?

A: They were self-contained and lacked continuity of title and subject matter.

Q: Were paper bags and wrapping paper taxable to the retailer?

A: Not when used as nonreturnable containers for merchandise sold with them.

Q: Did California decide whether halvah was exempt food?

A: No. Counsel requested a label and ingredient information before deciding.

Q: Did the letter provide a list of exempt drugstore foods?

A: No. It said no itemized list was available and pointed only to former Ruling 52 for general guidance.

Citations and references

• Former California Sales and Use Tax Rulings 49, 50, and 52 — cited and enclosed but absent
• April 3, 1950 request — described but not included
• Wrappers, labels, ingredients, merchandise, publications, containers, transactions, tax records, and outcomes — described or implicated but not documented

Verbatim support

From the official Associate Tax Counsel letter:

Comic books, which are complete in themselves and do not have any continuity of title and subject matter, are not regarded as periodicals, within the meaning of this exemption provision.

Therefore, the tax does not apply to the sale of paper bags and wrapping paper to you if you use the bags and wrapping paper as containers for merchandise which you sell.

If you will furnish us with a wrapper or label describing this product and listing its ingredients, we shall be pleased to advise you further.

Source

• Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
• Annotation page: Annotation 385.0160
• Original supporting opinion: 385.0160 PDF

Original ruling text

385.0160

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

April 6, 1950

Dear Sir:
This is in answer to your letter of April 3 with respect to the application of the State sales tax to retail sales of various articles of merchandise referred to therein. We are not familiar with the product called "Halvah" which you describe as a Turkish type almond product. We are, therefore, unable to advise you whether this product is to be regarded as a food product or a confection. If you will furnish us with a wrapper or label describing this product and listing its ingredients, we shall be pleased to advise you further. The application of the tax to paper bags and wrapping paper is governed by Sales and Use Tax Ruling 49, copy enclosed. As therein indicated, the tax does not apply to sales of nonreturnable containers when sold without the contents to persons who place the contents in the container and sell the contents, together with the container. Therefore, the tax does not apply to the sale of paper bags and wrapping paper to you if you use the bags and wrapping paper as containers for merchandise which you sell. The exemption from the tax relating to sales of newspapers and periodicals is indicated by Ruling 50, copy enclosed. As therein indicated, the tax does not apply to sale of newspapers or periodicals regularly issued at average intervals not exceeding three months. Comic books, which are complete in themselves and do not have any continuity of title and subject matter, are not regarded as periodicals, within the meaning of this exemption provision. Accordingly, we regard the sale of comic books at retail as subject to the tax. We do not have available an itemized list of items sold in a drug store which are regarded as food products and exempt from the tax. Ruling 52, copy enclosed, indicates, in general, the type of products regarded as food products the retail sale of which is exempt from the tax. Very truly yours,

R. G. HAMLIN
Associate Tax Counsel

RGH:HB
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