Did monthly newsletters distributed to members of San Francisco professional-engineering sections qualify as exempt periodicals?

Plain-English summary

A redacted publisher's absent October 31, 1966 letter concerned monthly newsletters issued by redacted organizations and the American Association of Cost Engineers, San Francisco Bay Section. The organizations distributed the newsletters to their members.

Associate Tax Counsel George A. Trigueros concluded that the described publications qualified as exempt periodicals under former section 6362 and Sales Tax Ruling 50. The short letter supplies no content, series-continuity, distribution, transaction, or tax analysis beyond that conclusion.

Later authority and source limits

A February 5, 2002 official staff email published with Annotation 385.0920 warns that, under then-current section 6362.7 and Regulation 1590, periodicals were no longer exempt unless sold by subscription and delivered by mail or common carrier, or covered by another exemption such as nonprofit distribution.

The live 385.1120 annotation names San Francisco sections of the American Institute of Mining, Metallurgical and Petroleum Engineers and the American Association of Cost Engineers. The supporting letter redacts the first organization and exposes only the second association's San Francisco Bay Section. The live entry says the newsletters “qualify as periodicals,” dropping the source's “exempt” wording. The sources do not establish current exemption facts.

The official PDF does not include the October 31 request, newsletters or issues, content or authors, publication or delivery schedules, organization or member records, subscription or payment terms, publisher or printer identity, printing agreement, invoices, distribution, sales or use, returns, exemption documentation, tax calculations or payments, audit, assessment, claim, appeal, or outcome. The publisher, two organizations, members, transactions, and amounts are mostly redacted or unidentified.

The official letter prints 385.1080 at both file positions and prints month1y with the numeral one. Its official source URL and live annotation identify 385.1120. This page follows the official publication identity while preserving the original text byte-for-byte.

The live annotation preserves monthly issuance, member distribution, the American Association of Cost Engineers, periodical qualification, and date. It adds the full first organization name, specifies San Francisco sections, and drops “exempt.” It omits the request and publisher, redacted organizations, San Francisco Bay wording, section 6362 and Ruling 50, PDF control-number conflict and source form, later 2002 warning, missing records, redactions, and absent outcome.

What this means for you

Associations, newsletter publishers, and tax professionals

Preserve every newsletter and issue, content and authors, publication and delivery schedules, organization and member records, subscription and payment terms, printing agreement, invoices, distribution, returns, exemption documentation, tax calculations, and payments.

Common questions

Q: How often were the newsletters issued?

A: Monthly.

Q: Who received them?

A: Members of the professional organizations.

Q: Did the source explain the content test?

A: No. It states the conclusion without reproducing the newsletters.

Q: Does the official PDF call this 385.1120?

A: No. The PDF text prints 385.1080, but the official URL and live page identify Annotation 385.1120.

Q: Does the live annotation still call the newsletters exempt?

A: No. It says they qualify as periodicals, while later official guidance warns that periodical status alone did not establish exemption under then-current law.

Citations and references

• Former California Revenue and Taxation Code § 6362
• Former California Sales Tax Ruling 50
• California Revenue and Taxation Code § 6362.7 and Regulation 1590 — discussed in the February 5, 2002 staff email published with Annotation 385.0920
• October 31 request, newsletters and issues, schedules, member distribution, printing, transactions, tax records, and outcome — described or implicated but not documented

Verbatim support

From the official Associate Tax Counsel letter:

It is our understanding that you publish month1y newsletters issued by the --- --- --- --- --- and --- ---, --- --- Section, and for the American Association of Cost Engineers, San Francisco Bay Section.

In our opinion, these publications qualify as exempt periodicals under § 6362 and sales tax ruling 50.

Source

• Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
• Annotation page: Annotation 385.1120
• Original supporting opinion: 385.1120 PDF

Original ruling text

385.1080

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

November 17, 1966

--- --- --XXX --- ----- ---, CA XXX
Attention: Mrs. --- --Secretary to the President
Gentlemen:
This is in reply to your letter of October 31, 1966.
It is our understanding that you publish month1y newsletters issued by the --- --- --- --- --- and
--- ---, --- --- Section, and for the American Association of Cost Engineers, San Francisco Bay
Section. These organizations distribute the newsletters to their members.
In our opinion, these publications qualify as exempt periodicals under § 6362 and sales tax
ruling 50.
Very truly yours,

George A. Trigueros
Associate Tax Counsel

GAT: em
cc: San Francisco - District Administrator