Could mimeographed club papers qualify as exempt newspapers even though they were not produced by a traditional typesetting process?

Plain-English summary

An August 7, 1951 letter relayed a Santa Ana office inquiry about whether the Rotary Breeze and another redacted club news bulletin were tax-exempt newspapers. California reviewed submitted samples, which were mimeographed papers conveying news and opinions, printed and distributed at stated intervals.

Former Ruling 50 applied the exemption to a newspaper or periodical regularly issued at average intervals no longer than three months and to property incorporated into one. The letter also quoted definitions of “newspaper” and “print” from a partly redacted 1933 dictionary.

Counsel recognized that Government Code sections 6000 and 6003 required a newspaper of general circulation to have a bona fide paying-subscriber list and use a typesetting process. But counsel found no comparable statutory requirement preventing a mimeographed paper from being a newspaper for sales-tax purposes.

Because the samples met the other requirements of Ruling 50, they qualified for the exemption.

Source and live-annotation limits

The official PDF does not include the August 7 letter, Santa Ana inquiry, sample publications, issues, contents, publication or distribution records, subscribers, sales, prices, component materials, invoices, returns, audit or assessment, dictionary entries, Ruling 50, or later outcome. It redacts the recipient, inquirer, second club, and part of the dictionary title. The letter names E. H. Stetson as sender but closes “AOC: ja”; it does not explain the initials.

The live annotation says qualifying mimeographed papers are exempt “even though not printed.” The linked letter instead quotes a broad definition of “print,” calls the samples “printed and distributed,” and distinguishes them only from the typesetting process required for a newspaper of general circulation. The live entry omits the August 7 request, two named samples, their news and opinion content, dictionary definitions, Government Code distinction, Ruling 50, redactions, initials, and source and outcome limits.

What this means for you

Clubs, newsletter publishers, printers, and tax professionals

Production technology did not control this historical classification. Preserve the publication samples, contents, production method, issue dates, distribution, subscribers, sales, and component records needed to meet current newspaper or periodical rules.

Common questions

Q: Were the submitted papers traditionally typeset?

A: No. They were mimeographed.

Q: What content did they convey?

A: News and opinions.

Q: Did Government Code newspaper-of-general-circulation standards control?

A: No. Counsel distinguished those standards from sales-tax newspaper treatment.

Citations and references

• Former California Sales and Use Tax Ruling 50
• California Government Code §§ 6000 and 6003
• Redacted 1933 dictionary, pages 1455 and 1706 — quoted in part but not included
• August 7, 1951 letter, Santa Ana inquiry, samples, publication and sales records, and outcomes — described or implicated but not documented

Verbatim support

From the official Board letter:

While it is true that a "newspaper of general circulation" is required to have a bona fide subscription list of paying subscribers and to be "printed" by means of a typesetting process, etc. (Gov. Code, Sections 6000, 6003) we do not know of any statutory requirements which would prevent a mimeographed publication from being considered a newspaper for purposes of exemption from sales tax.

Examination of the sample publications you have submitted indicates that they are memeographed papers conveying news and opinions, printed and distributed at stated intervals, and within the general definition of newspapers.

Source

• Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
• Annotation page: Annotation 385.0320
• Original supporting opinion: 385.0320 PDF

Original ruling text

385.0320

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

August 14, 1951
To:

Mr. --- (HHW)

From:

E. H. Stetson

This is in reply to your letter of August 7 concerning an inquiry of --- --- your Santa Ana office as to whether the “Rotary Breeze” and the --- --- Club News Bulletin” are exempt from tax as newspapers. As indicated by Ruling 50, exemption applies to sales of tangible personal property which becomes an ingredient or component part of any newspaper or periodical regularly issued at average intervals not exceeding three months, and to the sale of any such newspaper or periodical. "Newspaper" is defined --- --- --- national Dictionary (1933) p. 1455, as "a paper printed and distributed at stated intervals… to convey news, advocate opinions, etc., … " The general definition of "print" contained in the same dictionary (p. 1706) is "to stamp or impress with characters, figures, patterns or the like, transferred by pressure from plates, types or the like." While it is true that a "newspaper of general circulation" is required to have a bona fide subscription list of paying subscribers and to be "printed" by means of a typesetting process, etc. (Gov. Code, Sections 6000, 6003) we do not know of any statutory requirements which would prevent a mimeographed publication from being considered a newspaper for purposes of exemption from sales tax. Examination of the sample publications you have submitted indicates that they are memeographed papers conveying news and opinions, printed and distributed at stated intervals, and within the general definition of newspapers. They meet the other requirements of Ruling 50, and in our opinion come within the exemption of that ruling.

AOC: ja