Did McCall's monthly magazine, quarterly pattern book, and semiannual or annual needlework books qualify as exempt periodicals?

Plain-English summary

A redacted requester asked about four McCall publications. California said only the monthly magazine was exempt from state sales tax.

Former section 6362, as explained by an absent enclosed copy of Ruling 50, required an exempt property to be a newspaper or periodical regularly issued at average intervals no longer than three months.

The quarterly pattern book met that frequency ceiling, but counsel did not regard it as a periodical under Ruling 50. The annual and semiannual needlework books separately failed because neither appeared at least once every three months.

Source and live-annotation limits

The official PDF does not include the March 18 inquiry, McCall monthly magazine, quarterly pattern book, annual or semiannual needlework books, publication content, issues, schedules or distribution records, enclosed Ruling 50, publisher or seller, purchaser, sale, invoice, return, exemption claim, tax calculation or payment, Redding audit record, assessment, claim, appeal, or other outcome. The requester and recipient are redacted, and the inquiry's year is not printed.

The live annotation says quarterly pattern books and semiannual and annual needlework books do not qualify under Regulation 1590. The supporting letter addresses one McCall quarterly pattern book and identifies Ruling 50, not Regulation 1590, as the governing explanation. The live entry also omits the exempt monthly magazine, March inquiry, section 6362, missing enclosure, distinct classification and frequency grounds, Redding auditing copy, redactions, missing records, and outcome limits.

What this means for you

Pattern publishers, craft publishers, and tax professionals

Meeting a frequency ceiling was necessary but not sufficient under the historical letter. Preserve the governing rule, complete publication issues, content evidence, schedules, distributions, sales, and tax records.

Common questions

Q: Which publication was exempt?

A: The McCall monthly magazine.

Q: Why did the quarterly pattern book fail?

A: Counsel did not regard it as a periodical under Ruling 50.

Q: Why did the semiannual and annual books fail?

A: They were not issued at least once every three months.

Citations and references

• Former California Revenue and Taxation Code § 6362
• Former California Sales and Use Tax Ruling 50 — described as enclosed but not included
• March 18 inquiry, McCall publications, sales and tax records, auditing records, and outcomes — described or implicated but not documented

Verbatim support

From the official Tax Counsel letter:

In answer to your inquiry of March 18, we advise that of the publications mentioned in your letter only McCall monthly magazine is exempt from the State sales tax.

We do not regard McCall quarterly pattern book as a periodical within the meaning of Ruling 50.

McCall annual needlework book and McCall semi-annual needlework book do not, of course, qualify for exemption as they are not issued as frequently as once every three months.

Source

• Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
• Annotation page: Annotation 385.0360
• Original supporting opinion: 385.0360 PDF

Original ruling text

•

385.0360

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

April 9, 1953

Dear Miss ---:
In answer to your inquiry of March 18, we advise that of the publications mentioned in your letter only McCall monthly magazine is exempt from the State sales tax. The exemption is based upon Section 6362 of the Sales and Use Tax Law as explained in Ruling 50 (copy enclosed). You will note that to be exempt the property must be a newspaper or periodical regularly issued at average intervals not exceeding three months. We do not regard McCall quarterly pattern book as a periodical within the meaning of Ruling 50. McCall annual needlework book and McCall semi-annual needlework book do not, of course, qualify for exemption as they are not issued as frequently as once every three months.

Yours very truly,

E. H. Stetson
Tax Counsel

EHS : j a
cc: Redding - Auditing