Were The First Presbyterian and a separate morning-service sheet both exempt church periodicals?

Plain-English summary

Assistant Counsel assumed that two separate church publications were involved because their content substantially overlapped.

The First Presbyterian qualified for the historical periodical treatment, so amounts paid for its paper and printing were exempt from sales tax.

A separate single sheet listing hymns, the sermon topic, and similar morning-service information was a program rather than a periodical because it lacked substantial news content. Paper and printing for that sheet were taxable.

Counsel also explained that sales tax was legally imposed on the retailer. Only the paper or printing retailers, not the purchaser, could claim a refund of tax erroneously paid.

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 1952 opinion does not establish current exemption treatment.

The official 385.1620 PDF does not include the request, The First Presbyterian, morning-service sheet, any issue, article, hymn, sermon topic or other content, publication or service schedule, publisher, church, purchaser, printer or paper seller identity, Ruling 50 enclosure, paper or printing contract, price or invoice, sale or use, sales-tax charge or payment, refund claim or disposition, returns, exemption documentation, tax calculations, audit, assessment, appeal, or later outcome. The parties, church, retailers, transactions, and amounts are redacted or unidentified.

The source prints “becomes and ingredient,” “sales tax well apply,” and the title once as “the First Presbyterian.” The original-text section preserves those forms rather than silently correcting the official record.

The live annotation says First Presbyterian “as presently constituted” was exempt and preserves the separate hymn-and-sermon sheet, no-other-news fact, taxable-program result, and date. It omits Ruling 50, paper and printing, component-material and interval language, two-publication assumption and duplicated content, retailer-only refund rule, Long Beach audit copy, later 2002 warning, missing records, redactions, source forms, and absent outcome.

What this means for you

Churches, religious publishers, printers, and tax professionals

Classify each publication separately, especially when a newsletter and service program duplicate content. Preserve every issue and program, publication schedule, paper and printing contracts, invoices, sales and tax payments, returns, exemption documents, and refund records. Confirm the legally entitled refund claimant under current law before filing.

Common questions

Q: Was The First Presbyterian exempt?

A: Yes, including the paper and printing amounts described in the opinion.

Q: Why was the morning-service sheet taxable?

A: It was a program listing hymns and the sermon topic and lacked substantial news content.

Q: Who could claim a refund of erroneously paid sales tax?

A: The retailer that supplied the paper or printing.

Q: Did counsel know with certainty that there were two publications?

A: No. The opinion expressly says it assumed two because the content substantially overlapped.

Q: Did the source include Ruling 50?

A: No. It says a copy was enclosed, but the official PDF does not include it.

Citations and references

• Former California Sales and Use 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
• Request, publications, Ruling 50 enclosure, paper and printing purchases, tax payments, refund records, and outcome — described or implicated but not documented

Verbatim support

From the official Assistant Counsel opinion:

It is our opinion that "the First Presbyterian" falls within this exemption and the amounts which you pay for paper and printing are therefore exempt from sales tax.

It is our opinion that the single sheet which gives hymns, sermon topic, etc., for the morning service would be considered a program and therefore not a periodical because of its lack of any substantial news content.

Since the retailer is the taxpayer, only the retailer may claim a refund of taxes erroneously paid.

Source

• Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
• Annotation page: Annotation 385.1620
• Original supporting opinion: 385.1620 PDF

Original ruling text

385.1620

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

November 6, 1952

Gentlemen:
As indicated in Sales and Use Tax Ruling 50 (copy enclosed) sales tax does not apply to sales of tangible personal property which becomes and ingredient or component part of any periodical regularly issued at average intervals not exceeding three months. It is our opinion that "the First Presbyterian" falls within this exemption and the amounts which you pay for paper and printing are therefore exempt from sales tax. As indicated in Ruling 50, programs are not regarded as newspapers or periodicals. It is our opinion that the single sheet which gives hymns, sermon topic, etc., for the morning service would be considered a program and therefore not a periodical because of its lack of any substantial news content. Sales tax well apply, therefore, to the amounts you pay for paper and printing of it. In reaching our opinion we have assumed that two separate publications are involved inasmuch as there is considerable duplication in content. Legally speaking, the sales tax is imposed on the retailer and the amount which the purchaser pays as "sales tax" is merely an increase in the purchase price. Since the retailer is the taxpayer, only the retailer may claim a refund of taxes erroneously paid. The retailers from whom you obtain the paper and printing for The First Presbyterian may therefore submit a claim for refund of sales taxes erroneously paid.

Yours very truly,

W. W. Mangels
Assistant Counsel

NBH: ja
cc: Long Beach - Auditing