Was Victor Weld an exempt periodical when it consisted mostly of advertising layouts and product-centered human-interest articles?

Plain-English summary

A redacted printer's October 6, 1958 refund claim argued that Victor Weld, a magazine printed for a redacted customer, was exempt under former section 6362 and Ruling 50. The claim was referred to Legal for study and recommendation.

The submitted June 1958 issue consisted mostly of advertising layouts. Its few articles had some human-interest element, but counsel found their entire theme centered on advertising the customer's product. Ruling 50 paragraph A excluded printed matter containing advertisements exclusively.

Assuming the single sample was typical, counsel viewed the publication as exclusively devoted to advertising and recommended that the Board deny the refund. The letter promised later official notice of the Board's decision; neither notice nor final action appears in the source.

Source and live-annotation limits

The official PDF does not include the October 6, 1958 refund claim, June 1958 Victor Weld issue, any other issue, advertising layouts or articles, customer product, printer-customer agreement, print run, price, invoices, sales, returns, tax calculations or payments, Board record, final decision, official notice, appeal, enclosed Ruling 50 copy, or later outcome. The claimant, customer, product, transactions, and amounts are redacted or unidentified.

The source prints “your' customer,” uses “articles show,” and calls the publication “this matter” in the conclusion. The original-text section preserves those forms rather than silently correcting the official record.

The live annotation preserves the mostly-advertising, few human-interest articles, product-centered theme, and nonexemption conclusion. It omits the October refund claim, redacted printer and customer, Victor Weld name, former section 6362 and Ruling 50, June 1958 submitted issue and typicality assumption, Legal's recommendation posture, promised final decision, missing enclosure and records, redactions, and outcome limits.

What this means for you

Custom publishers, printers, advertisers, and tax professionals

Human-interest articles may not overcome an advertising classification when their theme remains product promotion. Preserve the entire issue set, content and area analysis, printing agreement, invoices, returns, refund claim and payment proof, and distinguish a staff recommendation from final agency action.

Common questions

Q: What did the submitted issue mostly contain?

A: Advertising layouts.

Q: Did the few articles change the result?

A: No. Counsel found that their theme still centered on advertising the customer's product.

Q: Was the refund denial final in this letter?

A: No. Counsel recommended denial and said official notice of the Board's decision would follow.

Citations and references

• Former California Revenue and Taxation Code § 6362
• Former California Sales and Use Tax Ruling 50
• October 6, 1958 refund claim, June 1958 issue, printer-customer records, sales, tax payments, and final decision — described or implicated but not documented
• Enclosed former Ruling 50 copy — not included

Verbatim support

From the official Assistant Counsel letter:

However, a careful study of these articles show that the whole theme is centered around the advertising of your customer’s product.

Consequently, it will be our recommendation to the Board that your claim for refund be denied. You will be officially notified of the Board's decision in due course.

Source

• Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
• Annotation page: Annotation 385.0780
• Original supporting opinion: 385.0780 PDF

Original ruling text

385.0780

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

December 31, 1958

Your Claim for Refund of October 6, 1958

Gentlemen:

Your claim for refund of the above date has been referred to the legal staff for study and recommendation. Your claim appears to be based upon the grounds that a certain magazine entitled "Victor Weld” which you print for your' customer, the --- --- --- is an exempt periodical under Section 6362 of the California Sales and Use Tax Law and Ruling 50, copy enclosed, of the Board's sales and use tax regulations. You will note that it is stated in paragraph A of Ruling 50 that the term “newspaper or periodical” does not include printed matter containing advertisements exclusively. We note that the copy of the foresaid publication dated June 1958, which you submitted to us along with your claim, consists mostly of advertising layouts and a few articles which do appear to have some element of human interest. However, a careful study of these articles show that the whole theme is centered around the advertising of your customer’s product. Therefore, assuming that the sample enclosed by you with your claim of the above date is typical of what you publish for your customer, Victor Weld, we are of the opinion that this matter is exclusively devoted to advertising and is not exempt under Section 6362 of the California Sales and Use Tax Law. Consequently, it will be our recommendation to the Board that your claim for refund be denied. You will be officially notified of the Board's decision in due course.

Very truly yours,

Stanley G. Lerner
Assistant Counsel
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Enc.
cc: San Francisco - Administrator