Were printed multiple-listing cards showing homes for sale, listing changes, and sold properties exempt periodicals?

Plain-English summary

San Francisco auditing staff asked whether data printed and distributed among a group of real-estate firms were periodicals under former Ruling 50. The materials showed homes offered for sale, corrections and other listing changes, and lists of properties that had sold.

The materials were form reference cards containing facts such as price, liens, rooms, baths, condition, and neighborhood.

California concluded that they were business reference cards, not newspapers or periodicals, and therefore did not qualify for the exemption in former Ruling 50.

Source and live-annotation limits

The official PDF does not include the San Francisco inquiry, listing cards, property descriptions, listings or corrections, sold-property lists, participating real-estate firms, publication or distribution schedules, customers, sales, prices, invoices, returns, audit or assessment, Ruling 50, or later outcome. It identifies no taxpayer, publisher, service, firm, property, buyer, seller, broker, or transaction.

The live annotation repeats the three listing categories and nonperiodical result. It omits the San Francisco audit origin, form-card description, price, lien, room, bath, condition and neighborhood fields, business-reference classification, Ruling 50, missing authority and records, and source and outcome limits.

What this means for you

Multiple-listing services, real-estate firms, and tax professionals

Regular distribution of updated business data did not by itself make these materials periodicals. Preserve the cards, contents, issue and distribution schedules, participating-firm records, transactions, and tax evidence needed to analyze whether a publication primarily serves as transaction reference material.

Common questions

Q: What information appeared on the cards?

A: Property price, liens, rooms, baths, condition, neighborhood, listing changes, and sold-property information.

Q: How did counsel classify them?

A: As business reference cards.

Q: Did they qualify under Ruling 50?

A: No.

Citations and references

• Former California Sales and Use Tax Ruling 50
• San Francisco Auditing inquiry, cards, firms, publication and distribution records, sales, tax records, and outcomes — described or implicated but not documented

Verbatim support

From the official Sales Tax Counsel memorandum:

The printed matter in question consists merely of form reference cards, each of which contains certain details about a home being offered for sale, e.g. price, liens, rooms, baths, etc.

It is our opinion, therefore, that the publications in question are not what one could reasonably call a newspaper or periodical; but they are merely business reference cards.

Source

• Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
• Annotation page: Annotation 385.0340
• Original supporting opinion: 385.0340 PDF

Original ruling text

385.0340

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

Sacramento

November 20, 1957

To:

San Francisco – Auditing (ESA)

From:

Headquarters – Sales Tax Counsel (BH: SGL)

Subject:

Multiple Listing Service

You inquire whether data printed and distributed among a group or real estate firms showing (1) homes listed for sale (2) corrections and other changes in the listing (3) list of properties that are sold are "periodicals" within the meaning of Ruling 50. The printed matter in question consists merely of form reference cards, each of which contains certain details about a home being offered for sale, e.g. price, liens, rooms, baths, etc. There are also usually some remarks about the condition of the home and the type of neighborhood in which it is located. It is our opinion, therefore, that the publications in question are not what one could reasonably call a newspaper or periodical; but they are merely business reference cards. Consequently, we feel that the printed matter in question does not come within the exemption of Ruling 50.

Bill Holden

SGL:ds