Did bound Oceanic Abstracts volumes offered at irregular intervals qualify as exempt periodicals?

Plain-English summary

A redacted publisher's February 15 letter asked about Oceanic Index and Oceanic Abstracts under former Ruling 50. Its first Oceanic Abstracts volume was a bound collection called State of the Art-Instrumentation, Vol. 1. Similar publications would be produced and offered to the public at irregular intervals.

The publisher had told its Sales and Accounting Department that category A had no sales-tax liability, while category B was taxable and required a seller's permit. Counsel concurred. The source does not expressly label which title was A or B, but its following explanations treat the Index subscription as nontaxable and the Abstracts as taxable retail sales. The irregular bound volumes did not receive the treatment given to the bimonthly Index.

The publisher could buy printing and physical components without tax as property incorporated into publications sold at retail, with tax measured by the retail sales price.

The same opinion exempted the Oceanic Index annual subscription and its printing under the historical analysis and addressed self-printed component property. That companion result is separately published by CDTFA under Annotation 385.1800.

Source and live-annotation limits

The official 385.1820 PDF does not include the February 15 request, Oceanic Abstracts, Oceanic Index, any volume or issue, abstracts or marine references, publication or delivery schedules, publisher or customers, category definitions, Sales and Accounting Department records, seller's permit, Ruling 50 enclosure, printer, printing or components, contracts, prices or invoices, retail sales or uses, returns, resale or exemption documentation, tax calculations or payments, audit, assessment, claim, appeal, or later outcome. The publisher, customers, printer, transactions, and amounts are redacted or unidentified.

The source prints “will be produces.” The original-text section preserves that form. The live annotation preserves the title, bound abstracts, irregular intervals, date, and nonexempt result. It omits the request, Ruling 50 and enclosure, Volume 1 and first-publication status, category A/B advice, Sales and Accounting Department, seller's permit, taxable-retail-sale and retail-price measure, resale treatment for printing and components, Oceanic Index companion analysis, missing records, redactions, source form, and absent outcome.

What this means for you

Reference publishers and tax professionals

Bound works offered only when completed or needed may be taxable rather than periodicals. Preserve every volume, content and issue schedule, printer and component contracts, resale documents, seller's permit, invoices and retail sales, returns, tax calculations, and payments.

Common questions

Q: Did Oceanic Abstracts qualify as an exempt periodical?

A: No.

Q: What scheduling fact mattered?

A: Similar bound volumes would appear at irregular intervals.

Q: Could the publisher buy printing and components without tax?

A: Yes, because those items became part of the publication sold at retail.

Q: Did the opinion also address Oceanic Index?

A: Yes. It treated the bimonthly Index subscription and printing as exempt under the historical analysis.

Q: Did the source define categories A and B?

A: No. The following analysis supplies the Index and Abstracts results but does not formally map the labels.

Citations and references

• Former California Sales Tax Ruling 50, Newspapers and Periodicals
• February 15 request, publications, Ruling 50 enclosure, printing and components, seller's permit, retail sales, tax records, and outcome — described or implicated but not documented

Verbatim support

From the official Tax Counsel opinion:

The Oceanic Abstracts, State of the Art-Instrumentation, Vol. 1, is our first publication of abstracts and is bound. Similar publications will be produces and offered to the public at irregular intervals.

With respect to the Oceanic Abstracts, you can also purchase the printing or components without tax because they are a part of the publication which you sell at retail and on which you will pay tax measured by the retail sales price.

Source

• Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
• Annotation page: Annotation 385.1820
• Original supporting opinion: 385.1820 PDF

Original ruling text

STATE OF CALIFORNIA

385.1820

STATE BOARD OF EQUALIZATION

February 17, 1967
Dear Mr. ---:
This is in answer to your letter of February 15 concerning the status of two publications, Oceanic Index and Oceanic Abstracts, for sales tax purposes under Ruling 50, Newspapers and Periodicals, copy enclosed. Concerning the Oceanic Index, you state: “The Oceanic Index is produced every two months and is cumulative at the end of each year. It includes up-to-date references to currently published literature that is marine oriented. Users are charged $300.00 per year as an annual subscription fee.” Concerning the Oceanic Abstracts, you state: “The Oceanic Abstracts, State of the Art-Instrumentation, Vol. 1, is our first publication of abstracts and is bound. Similar publications will be produces and offered to the public at irregular intervals.” You state that you have advised your Sales and Accounting Department that there is no sales tax liability under category A, but that under category B, the tax applies and a seller’s permit is required which will be obtained from the Board. We concur in this advice which you have given to your Sales and Accounting Department. By way of further explanation, the subscription charge for the Oceanic Index is not subject to tax. The purchase of the printing of this publication is also tax exempt and an exemption certificate, as explained in Ruling 50, can be furnished to the printer. In the event you do your own printing, you could purchase without tax any property becoming an ingredient or component part of the publication, but tax would apply to your purchase of any other property used in producing the publication but not becoming a physical part thereof. With respect to the Oceanic Abstracts, you can also purchase the printing or components without tax because they are a part of the publication which you sell at retail and on which you will pay tax measured by the retail sales price. Very truly yours,

E. H. Stetson
Tax Counsel