Were tariffs and corrective tariff supplements exempt periodicals when both were published at irregular intervals?

Plain-English summary

California reviewed a redacted taxpayer's tariffs and tariff supplements. The opinion refers to an inquiry, a memorandum, and an attached typical supplement, none of which appears in the official PDF.

The supplements were issued only when needed and not at any regular interval. Paper-bound tariff volumes also appeared at irregular intervals longer than three months. Both failed former section 6362's regular-issuance condition.

The writer additionally questioned whether a self-contained supplement issued to correct the tariff then in effect was a periodical at all.

California recommended treating retail sales of the tariffs and supplements as taxable. The redacted organization's Legal Department could submit further objections and supporting authority directly to the office.

Source and live-annotation limits

The official PDF does not include the inquiry, memorandum, attached typical supplement, tariff or paper-bound volume, publication schedule, issue dates, customer, sale, price, invoice, return, tax calculation or payment, audit, assessment, legal objection, supporting authority, claim, appeal, or later outcome. The taxpayer, account, Legal Department, publications, transactions, amounts, recipient, and RGH's full role are redacted or unidentified.

The live annotation preserves only that irregular tariffs and tariff supplements were not exempt newspapers or periodicals. It omits the inquiry and memorandum, attached typical supplement, paper-bound volumes, more-than-three-month interval, issued-as-required fact, section 6362's quoted frequency condition, complete-in-itself concern, recommended retail-sale treatment, invitation for Legal Department objections and authority, missing records, redactions, and outcome limits.

What this means for you

Tariff publishers, carriers, and tax professionals

Event-driven corrections may fail both the frequency requirement and the underlying periodical classification. Preserve every tariff and supplement, actual issue dates, correction triggers, relationship to the continuing publication, customers, prices, invoices, returns, and current classification analysis.

Common questions

Q: How often were the supplements issued?

A: Irregularly, only as required.

Q: How often were the paper-bound tariffs issued?

A: At irregular intervals longer than three months.

Q: What result did counsel recommend?

A: Treating retail sales of both tariffs and tariff supplements as taxable.

Q: Could the publisher object further?

A: Yes. Counsel invited its legal department to provide supporting authority.

Citations and references

• Former California Revenue and Taxation Code § 6362
• Inquiry, memorandum, attached typical supplement, tariffs, sales, transaction, and tax records — described or implicated but not documented

Verbatim support

From the official internal opinion:

In addition to the fact that the tariff supplements are issued only as required and at irregular intervals, we seriously question whether the supplement which is issued to correct the tariff then in effect and which is complete in itself, constitutes a periodical within the meaning of said Section 6362.

In view of the above, we suggest that you treat retail sales of tariffs and tariff supplements as subject to the tax.

Source

• Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
• Annotation page: Annotation 385.0640
• Original supporting opinion: 385.0640 PDF

Original ruling text

385.0640

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

Sacramento

May 18, 1950

R. G. Hamlin

Acct. --- --- --You have inquired with respect to the application of the tax to sales of tariffs and tariff supplements by the above taxpayer, a copy of a typical tariff supplement being attached to your memorandum. From our examination of the tariff supplement and from the information in your memorandum, it appears that the tariff supplements are not issued at any regular interval. Inasmuch as Section 6362 of the Revenue and Taxation Code requires as a condition of exemption that publications be “regularly issued at average intervals not exceeding three months," it does not appear that the tariff supplements are periodicals within the meaning of that section. It also appears that the paper-bound volumes of the tariff are published at irregular intervals greater than three months. In addition to the fact that the tariff supplements are issued only as required and at irregular intervals, we seriously question whether the supplement which is issued to correct the tariff then in effect and which is complete in itself, constitutes a periodical within the meaning of said Section 6362. In view of the above, we suggest that you treat retail sales of tariffs and tariff supplements as subject to the tax. If the Legal Department of the --- wishes to make further objections to the taxability of such sales, it can take the matter up directly with this office and furnish us with the authority with which it wishes to support its contention.

RGH:HB