Was an annually published regional directory an exempt thirteenth issue of the publisher's monthly trade journal?

Plain-English summary

An unnamed addressee paid an out-of-state printing firm an unstated amount for a redacted directory for Arizona, California, Nevada, and Utah. A May 7 request asked how use tax applied and whether the directory was the thirteenth issue of a redacted monthly magazine.

The directory's page 2 called it published annually by a redacted San Francisco publications company. The statement separately described that company as publisher of a redacted monthly trade journal for the Eleven Western States. The directory and magazine also had different formats, sizes, and names.

Assistant Counsel W. W. Mangels therefore treated the directory as a separate, nonexempt publication rather than a thirteenth magazine issue. The letter did not prescribe advance changes that would guarantee another classification, but offered to review the directory after it was printed. No later submission, review, tax amount, or outcome appears.

Source and live-annotation limits

The official PDF does not include the May 7 request, directory, monthly journal, page 2, issue or publication schedules beyond the annual and monthly descriptions, editorial or subject-matter comparison, out-of-state printing agreement, amount paid, printer invoice or payment, copies printed, subscriber or distribution records, sales, returns, use-tax calculation or payment, later printed directory or review, audit, assessment, claim, appeal, or outcome. The addressee, printer, publications company, directory, magazine, addresses, transactions, and amounts are redacted or unidentified.

The source prints Arizona-CaliforniaNevada-Utah." and closes the quoted publication statement with a curly quotation mark. The original-text section preserves those forms rather than silently correcting the official record.

The live annotation preserves only the not-a-thirteenth-issue conclusion and different-format, size, and name rationale. It omits the May 7 request and use-tax question, out-of-state printer and payment, four-state directory, annual and monthly publication statements, San Francisco publisher and Eleven Western States scope, separate-publication and nonexempt conclusions, refusal to prescribe changes, offered post-printing review, missing records, redactions, and absent outcome.

What this means for you

Trade publishers and tax professionals

Series identity depends on more than common ownership. Preserve every directory and journal issue, title, format, size, publication statement, editorial and subject-matter continuity, printing agreement, invoice, payment, subscriber and distribution records, sales, returns, tax calculations, and later agency review.

Common questions

Q: What features separated the directory from the magazine?

A: Its annual publication statement, different name, different format, and different size.

Q: Did California treat it as a thirteenth issue?

A: No.

Q: Did counsel guarantee what changes would make it qualify?

A: No. Counsel offered to review the finished directory instead.

Q: Did the letter calculate use tax or state a final amount due?

A: No. It identifies neither the amount paid nor a tax calculation or transaction outcome.

Citations and references

• May 7 request — year, author, and copy absent
• Annual four-state directory and its page 2 publication statement — copy and complete issue details absent
• Monthly trade journal for the Eleven Western States — title, issues, and records absent
• Printing agreement, payment, publication and distribution records, invoices, sales, returns, tax calculations, later review, and outcome — described or implicated but not documented

Verbatim support

From the official Assistant Counsel letter:

That statement together with the different format and size and the different name given the two publications leads us to the conclusion that the directory is to be considered a separate publication and not exempt.

We are unable to advise what changes should be made in the directory in order that it may be considered to be a thirteenth issue of your monthly magazine.

Source

• Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
• Annotation page: Annotation 385.0900
• Original supporting opinion: 385.0900 PDF

Original ruling text

385.0900

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

June 26, 1952

Attention:
Gentlemen:
This is in reply to your letter of May 7 concerning the application of use tax to the amount paid by you to an out-of-state printing firm for the --- Directory for Arizona-CaliforniaNevada-Utah." It is our opinion that the directory is not to be considered as the thirteenth issue of the monthly magazine --- On page 2 of the directory there appears the statement "Published annually by --- Publications, --- San Francisco --- California, also publishers of --- a monthly trade journal for the Eleven Western States.” That statement together with the different format and size and the different name given the two publications leads us to the conclusion that the directory is to be considered a separate publication and not exempt. We are unable to advise what changes should be made in the directory in order that it may be considered to be a thirteenth issue of your monthly magazine. After the directory is printed, however, we shall be pleased to give you our opinion concerning its status.

Very truly yours,

W. W. Mangels
Assistant Counsel

NBH: ja