Did a newsletter sent every four to six weeks qualify as an exempt periodical when it lacked a stated, regular publication schedule?

Plain-English summary

A redacted publisher's September 1, 1976 letter asked whether its newsletter qualified for sales-tax exemption under former section 6362 and Regulation 1590. The newsletter went every four to six weeks to local practitioners of the transcendental-meditation program.

Regulation 1590 limited periodicals to publications appearing at stated intervals with general-interest news or information. Exemption also required regular issuance at average intervals no longer than three months.

Tax Counsel Gary J. Jugum found that the redacted newsletter appeared neither at stated intervals nor with required regularity. It did not qualify on its then-current schedule. Counsel said it would qualify if issued regularly, making schedule the stated failure rather than subject matter. No later schedule, transaction, tax amount, or outcome appears.

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 1976 letter does not address that later regime.

The official 385.1335 PDF does not include the September 1 request, newsletter or any issue, title or publisher identity, article or author records, publication or delivery schedule beyond the four-to-six-week description, recipient or organization records, prices or invoices, sales, distributions, subscriptions, returns, exemption documentation, tax calculations or payments, audit, assessment, claim, appeal, later regular schedule, or outcome. The publisher, publication, practitioners, recipients, transactions, and amounts are redacted or unidentified.

The PDF metadata labels the document 385.1338, while the official body, source URL, and live page identify 385.1335. This page follows the body without altering or silently resolving the metadata conflict.

The live annotation preserves the unstated-interval failure, Regulation 1590, nonexempt result, and date. It adds the Berkeley Center News and Berkeley World Plan Center names. It omits the request, every-four-to-six-weeks schedule, local transcendental-meditation recipients, section 6362 and complete interval rules, lack-of-regularity finding, schedule-only and future-qualification statements, PDF metadata conflict, later 2002 warning, missing records, redactions, and absent outcome.

What this means for you

Newsletter publishers and tax professionals

Frequency alone is not enough. Preserve every newsletter and issue, stated and actual publication and delivery calendars, content, authors, publisher and recipient records, distribution, subscriptions, invoices, sales, returns, exemption documentation, tax calculations, and payments.

Common questions

Q: Was every four to six weeks frequent enough?

A: It was within three months, but the newsletter still lacked stated, regular intervals.

Q: Was its subject matter disqualifying?

A: No. The opinion based the denial on scheduling.

Q: Could the publication later qualify?

A: Yes, if issued on a regular schedule.

Q: Did the supporting letter identify Berkeley Center News?

A: No. It redacts the newsletter and publisher; the live annotation supplies both names.

Q: Does the PDF metadata match the annotation?

A: No. The metadata says 385.1338, while the body, URL, and live page say 385.1335.

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, newsletters and issues, schedules, recipients, distribution, transactions, tax records, and outcome — described or implicated but not documented

Verbatim support

From the official Tax Counsel letter:

We understand that your newsletter is sent out every four to six weeks to local practitioners of the transcendental meditation program.

It appears that --- is not issued at stated intervals nor with the regularity required by the regulation.

If the publication were issued on a regular schedule, the publication would qualify for exemption.

Source

• Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
• Annotation page: Annotation 385.1335
• Original supporting opinion: 385.1335 PDF

Original ruling text

385.1335

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

(916) 445-2641

September 15, 1976

--- ----- --- --This is in response to your letter of September 1, 1976. You have raised a question as to whether your newsletter --- qualifies for exemption from the sales tax pursuant to Revenue and Taxation Code Section 6362 and our Regulation 1590 “Newspapers and Periodicals.” We understand that your newsletter is sent out every four to six weeks to local practitioners of the transcendental meditation program. Regulation 1590 provides that the term “periodical” is limited to those publications which appear at stated intervals, each issue of which contains news or information of general interest to the public, or to some particular organization or group of persons. To qualify for exemption a publication must be regularly issued at average intervals not exceeding three months. It appears that --- is not issued at stated intervals nor with the regularity required by the regulation. Consequently, your publication does not qualify for exemption from the tax based upon its schedule of publication at this time. If the publication were issued on a regular schedule, the publication would qualify for exemption.

Very truly yours,

Gary J. Jugum
Tax Counsel

J: alicetilton
bc: Oakland – District Administration