Were retail sales and resales of secondhand comic books exempt when the comics qualified as exempt periodicals when first issued?

Plain-English summary

A redacted requester asked whether sales tax applied to secondhand comic books after reportedly receiving conflicting Board advice. The March 9, 1977 response says the recent request arrived February 22 but does not reproduce the request or earlier advice.

Tax Counsel Gary J. Jugum said later retail sales and resales were exempt if the comics had qualified as exempt periodicals under former section 6362 and Regulation 1590 when issued.

The result did not apply when the comic books were sold for use as scrap. The source supplies no comic title, original classification, sale, buyer, scrap use, amount, or outcome.

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 1977 letter does not address that later law or establish current treatment of old comics.

The official 385.1250 PDF does not include the request, prior conflicting Board advice, comic books or issues, original publisher, original publication or sale, original section 6362/Regulation 1590 classification evidence, secondhand sellers or buyers, prices or invoices, retail sales or resales, intended or actual scrap use, returns, exemption or resale documentation, tax calculations or payments, audit, assessment, claim, appeal, or outcome. The requester, sellers, buyers, publications, transactions, and amounts are redacted or unidentified.

The source prints “received in this office an February 22.” The original-text section preserves that form rather than silently correcting the official record.

The live annotation preserves the original-qualification condition, secondhand sale exemption, and scrap-use exception. It says the books had to qualify “when originally sold,” while the supporting letter says “when issued.” It omits the request and conflicting advice, subsequent retail sales and resales wording, section 6362 and Regulation 1590, later 2002 warning, missing records, redactions, source form, and absent outcome.

What this means for you

Used-comic sellers and tax professionals

Preserve each comic and issue, original publication and classification record, every seller and buyer, prices and invoices, secondhand sales and resales, scrap-use intent and evidence, returns, exemption or resale documentation, tax calculations, and payments.

Common questions

Q: Were all used comic books exempt?

A: No. They had to qualify as exempt periodicals when originally issued.

Q: Did the exemption continue through later resales?

A: Yes.

Q: Did it cover comic books sold as scrap?

A: No.

Q: What conflicting Board advice had the requester received?

A: The letter does not reproduce or describe it.

Q: Did the source test a specific comic book?

A: No. It states a conditional rule without identifying any title, issue, or original classification evidence.

Citations and references

• Former California Revenue and Taxation Code § 6362
• California Sales and Use Tax Regulation 1590
• California Revenue and Taxation Code § 6362.7 and Regulation 1590 — discussed in the February 5, 2002 staff email published with Annotation 385.0920
• Request, prior advice, comics and original classification, sales and resales, scrap use, transactions, tax records, and outcome — described or implicated but not documented

Verbatim support

From the official Tax Counsel letter:

You have received conflicting advice from the Board in response to this question.

unless the comic books are sold as scrap, if the items were exempt as periodicals under Revenue and Taxation Code Section 6362 and our Regulation 1590 “Newspapers and Periodicals” when issued, then subsequent retail sales and resales of the books would likewise be exempt from the tax.

Source

• Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
• Annotation page: Annotation 385.1250
• Original supporting opinion: 385.1250 PDF

Original ruling text

385.1250

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

March 9, 1977

Dear Ms. --This is in response to your recent letter received in this office an February 22, 1977.
You have inquired as to whether sales tax applies to the sale of secondhand comic books.
You have received conflicting advice from the Board in response to this question.
It is our opinion that unless the comic books are sold as scrap, if the items were exempt
as periodicals under Revenue and Taxation Code Section 6362 and our Regulation 1590
“Newspapers and Periodicals” when issued, then subsequent retail sales and resales of the books
would likewise be exempt from the tax.

Very truly yours,

Gary J. Jugum
Tax Counsel

j : alicetilton
bc: San Francisco - District Administrator