Were Red Books exempt periodicals when they were classified advertising directories with mileage, nutrition, postal-zone, and street-guide features?

Plain-English summary

California reviewed multiple submitted publications called Red Books. As then constituted, they were classified directories containing advertisements exclusively and were taxable advertising media rather than exempt periodicals under former Ruling 50.

Additional mileage and nutrition tables, postal-zone maps, Los Angeles-area street guides, and similar features did not change the result.

The writer separately noted that most submitted books had different titles. Because publications without title continuity generally were not treated as periodicals, each could constitute a separate taxable publication.

Source and live-annotation limits

The official PDF does not include the November 27, 1951 request, any Red Book, title list, advertisements, classified listings, mileage or nutrition table, postal-zone map, street guide, publication schedule, issue sequence, customer, price, invoice, sale, return, exemption claim, tax calculation or payment, audit, assessment, claim, appeal, enclosed Ruling 50 copy, or later outcome. The requester, publisher, advertisers, publications beyond the shared label, transactions, and amounts are redacted or unidentified.

The source prints “contain --- in such as,” “postal sones,” and “Los Angles.” The original-text section preserves those forms rather than silently correcting the official record.

The live annotation preserves the Red Books, classified-directory, exclusive-advertising, taxable-media, nutrition, postal-map, street-guide, and nonexemption conclusions. It omits the November request, multiple submitted copies, “as presently constituted” limit, mileage tables, former Ruling 50 and missing enclosure, different titles and separate-publication reasoning, missing records, redactions, and outcome limits.

What this means for you

Directory publishers, advertisers, and tax professionals

Incidental reference features may not overcome an advertising-directory classification. Preserve every issue, ads, reference matter, printed-area analysis, publication schedule, and title sequence, plus invoices, returns, and tax calculations when claiming a continuous periodical series.

Common questions

Q: How did counsel classify the Red Books?

A: As taxable classified advertising directories.

Q: Did maps, tables, and street guides make them exempt?

A: No.

Q: Why did the different titles matter?

A: They suggested the books could be separate publications rather than issues in one continuous series.

Citations and references

• Former California Sales and Use Tax Ruling 50
• November 27, 1951 request, submitted Red Books, ads, tables, maps, guides, sales, transaction, and tax records — described or implicated but not documented
• Enclosed former Ruling 50 copy — not included

Verbatim support

From the official opinion letter:

It is our opinion that, as presently constituted, these "Red Books" are not exempt periodicals but are in the nature of taxable classified directories, which, in substance, are publications containing advertisements exclusively.

We note, moreover, that, in the main, each “Red Book" enclosed with your inquiry has a different title, and each one, accordingly, may constitute a separate publication as we generally do not regard publications without continuity of title as exempt "periodicals”, but merely as separate publications to which the tax applies.

Source

• Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
• Annotation page: Annotation 385.0800
• Original supporting opinion: 385.0800 PDF

Original ruling text

385.0800

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

January 25, 1952

Dear Mr.
This is in answer to your letter of November 27, 1951, in which you enclose certain publications referred to as “Red Books” You inquire whether these publications constitute exempt periodicals within the meaning of Sales and Use Tax Ruling 50, copy enclosed. It is our opinion that, as presently constituted, these "Red Books" are not exempt periodicals but are in the nature of taxable classified directories, which, in substance, are publications containing advertisements exclusively. It is our opinion that the additional features contain --- in such as mileage tables, nutrition tables, maps of postal sones, street guides of the Los Angles area, etc., do not take these publications out of the category of taxable advertising media. We note, moreover, that, in the main, each “Red Book" enclosed with your inquiry has a different title, and each one, accordingly, may constitute a separate publication as we generally do not regard publications without continuity of title as exempt "periodicals”, but merely as separate publications to which the tax applies.

Very truly yours,

E.H. Stetson

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