Did a weekly county foreclosure-sales publication qualify as a periodical when it listed trustee-sale dates, loan defaults, and filed default notices?

Plain-English summary

A redacted publisher's April 16, 1986 letter asked whether tax should be charged on its weekly Foreclosure Sales (Updated Weekly) — County publication. Tax Counsel reviewed the absent March 24, 1986 issue; the county name is redacted.

The issue contained scheduled trustee-sale dates, loan-default data, and filed default notices. Counsel concluded that the weekly publication met the former section 6362 and Regulation 1590(a)(2) periodical exemption because it appeared with the required frequency and supplied news and information of interest to readers seeking properties through foreclosure sales. The publisher was told not to charge tax on its sales.

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 385.1638 annotation separately flags “Subsequent statutory changes.” The 1986 opinion does not establish current exemption treatment.

The official 385.1638 PDF does not include the April 16 request, March 24 county issue, any other issue, trustee-sale schedule, loan-default data or filed notice, publication or delivery records, publisher or reader identity, county name, subscription terms, price or invoice, sale or use, returns, exemption documentation, tax calculations or payments, audit, assessment, claim, appeal, Regulation 1590 enclosure, identified subsequent statutory change, or later outcome. The publisher, county, readers, properties, borrowers, trustees, transactions, and amounts are redacted or unidentified.

The source prints Regulation l590, exempt" periodical, and trustee's sales. The original-text section preserves those forms. The live annotation preserves the title, frequency, news/information conclusion, audience, date, and exempt-periodical result and flags later statutory changes. It omits the request, March 24 issue, county redaction, scheduled trustee sales, loan-default data and filed notices, section 6362 and Regulation 1590(a)(2), instruction not to charge tax, missing enclosure and other records, source forms, redactions, and absent outcome.

What this means for you

Real-estate data publishers and tax professionals

Preserve every issue and data source, recurring publication and delivery schedule, subscription terms, contracts, invoices and sales, returns, exemption documents, tax calculations, and payments. Show how current foreclosure data serves an identifiable reader group, and apply current law.

Common questions

Q: Did foreclosure listings count as news or information?

A: Yes.

Q: What issue did counsel review?

A: The March 24, 1986 issue of a county edition; the county is redacted.

Q: Did the live annotation warn of later changes?

A: Yes, but it does not identify them.

Q: Did weekly publication meet the frequency rule?

A: Yes.

Citations and references

• Former California Revenue and Taxation Code § 6362
• California Sales and Use Tax Regulation 1590(a)(2)
• California Revenue and Taxation Code § 6362.7 and Regulation 1590 — discussed in the February 5, 2002 staff email published with Annotation 385.0920
• April 16 request, March 24 county issue, publication and sales records, Regulation 1590 enclosure, tax records, and outcome — described or implicated but not documented

Verbatim support

From the official Tax Counsel opinion:

Our opinion is that this publication qualifies as a periodical exempt from sales and use tax under Revenue and Taxation Code Section 6362 and Sales and Use Tax Regulation l590 (a) (2).

This publication qualifies as an exempt" periodical because it is published with the requisite frequency, and contains news and information of general interest to readers interested in acquiring properties through foreclosure sales, such as information on dates of scheduled trustee's sales, loan default data, and notices of defaults filed.

Source

• Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
• Annotation page: Annotation 385.1638
• Original supporting opinion: 385.1638 PDF

Original ruling text

385.1638
STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

WILLIAM M. BENNETT
First District, Kentfield

1020 N STREET, SACRAMENTO, CALIFORNIA
(PO BOX 1799, SACRAMENTO, CALIFORNIA 95808)
(916) 445-8900

CONWAY H. COLLIS
Second District, Los Angeles
ERNEST J. DRONENBURG, JR
Third District, San Diego
RICHARD NEVINS
Fourth District, Pasadena

Reg. 1590 "Foreclosure Sales" is an exempt periodical.

KENNETH CORY
Controller, Sacramento

DOUGLAS D. BELL
Executive Secretary

May 30, 1986

Dear Mr.
In your April 16, 1986 letter to the Board's legal staff, you enclosed the March 24, 1986 issue of your publication entitled “Foreclosure Sales (Updated Weekly) --- County,” and you ask if you should be charging tax on this weekly publication. Our opinion is that this publication qualifies as a periodical exempt from sales and use tax under Revenue and Taxation Code Section 6362 and Sales and Use Tax Regulation l590 (a) (2). Accordingly, you should not charge tax on your sales of this publication. This publication qualifies as an exempt" periodical because it is published with the requisite frequency, and contains news and information of general interest to readers interested in acquiring properties through foreclosure sales, such as information on dates of scheduled trustee's sales, loan default data, and notices of defaults filed. I enclose a copy of Regulation 1590 for your information. Please feel free to contact me if you have any questions or comments about this letter.

Very truly yours,

John Abbott
Tax Counsel

JA:hb Enclosure