Did the publications “Bestline Treasures” and “Keys to Success” qualify for California's newspaper and periodical exemption?

Plain-English summary

San Jose Auditing's absent September 10, 1976 memorandum submitted two taxpayer publications for review. The live annotation identifies the taxpayer as Bestline Products, Inc.; the supporting memo does not expose that name.

Headquarters Tax Counsel concluded that “Bestline Treasures” and “Keys to Success” did not qualify under former section 6362 and Regulation 1590.

The only stated rationale was similarity to “Crown” and “Corporate Calendar,” which staff had found taxable in a May 30, 1973 memorandum to the same office. That earlier memo was listed as attached but is not part of the official PDF.

The memo says the materials in question were returned as attachments. They too are absent. The source therefore supports the result for the two named publications but no more specific explanation of frequency, content, format, advertising, sales, tax, or outcome.

Source and live-annotation limits

The official PDF does not include the September 10 audit memorandum, Bestline Treasures, Keys to Success, Crown, Corporate Calendar, May 30, 1973 prior memorandum, any attachment, issue or publication schedule, article or author, content or format comparison, advertising or printed-area record, taxpayer identity, publisher or recipients, distribution or subscription terms, prices or invoices, sales or uses, returns, exemption documentation, tax calculations or payments, audit, assessment, claim, appeal, or outcome. The taxpayer, publishers, publications beyond titles, recipients, transactions, and amounts are redacted or unidentified.

The live annotation preserves both publication titles, section 6362 and Regulation 1590, the nonexempt result, and date. It adds the Bestline Products, Inc. identity. It omits both audit memoranda, Crown and Corporate Calendar, comparison-only rationale, missing attachments and returned materials, absence of detailed analysis, redactions, and absent outcome.

What this means for you

Company publishers and tax professionals

This source is evidence of the result, not a complete classification method. Preserve every publication and issue, schedule, content and authors, format comparisons, advertising measurements, recipients and distribution, subscriptions, invoices, sales, returns, exemption records, tax calculations, and payments.

Common questions

Q: Did either Bestline publication qualify for exemption?

A: No.

Q: What authority did Tax Counsel cite?

A: Former Revenue and Taxation Code section 6362 and Regulation 1590.

Q: Does the published source explain exactly why they failed?

A: No. It refers to an attached earlier memorandum and reviewed materials that are not included.

Q: Did the supporting memo identify Bestline Products, Inc.?

A: No. It says only “Taxpayer”; the live annotation supplies the company name.

Q: What happened to the reviewed materials?

A: The memo says they were returned as attachments, but the official PDF does not include them.

Citations and references

• Former California Revenue and Taxation Code § 6362
• California Sales and Use Tax Regulation 1590
• May 30, 1973 memorandum about Crown and Corporate Calendar — listed as attached but absent
• September 10 audit memo, four publications, attachments, issue and content records, sales and tax records, and outcome — described or implicated but not documented

Verbatim support

From the official Headquarters Tax Counsel memorandum:

Taxpayer’s publications “Bestline Treasures” and “Keys to Success” do not qualify for exemption from tax under Revenue and Taxation Code Section 6362 and our Regulation 1590.

These materials are similar to “Crown” and “Corporate Calendar” which we found to be taxable in our memorandum to your office of May 30, 1973, copy attached for your reference.

Source

• Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
• Annotation page: Annotation 385.1338
• Original supporting opinion: 385.1338 PDF

Original ruling text

State of California

Board of Equalization

Memorandum

To:

San Jose – Auditing (RDC)

From:

Tax Counsel (GJJ) – Headquarters

385.1338

Date:

Sept. 15, 1976

Subject:

This is in response to your memorandum of September 10, 1976.
Taxpayer’s publications “Bestline Treasures” and “Keys to Success” do not qualify for
exemption from tax under Revenue and Taxation Code Section 6362 and our Regulation 1590.
These materials are similar to “Crown” and “Corporate Calendar” which we found to be taxable
in our memorandum to your office of May 30, 1973, copy attached for your reference.
Herewith the materials in question in accordance with your request.

j: alicetilton
Attachments