Which American Psychological Association publications qualified as exempt periodicals?

Plain-English summary

The American Psychological Association asked about several publications.

California concluded that 13 journals issued monthly or every two months and a monthly employment bulletin qualified as exempt periodicals under the historical rule.

The annual directory did not meet the required publication frequency and was taxable. The opinion also said publications in the nature of treatises or texts would be taxable.

The source referred to an earlier letter for the reasons the association was a retailer engaged in California, but that earlier analysis is not reproduced in this PDF.

What this means for you

Associations, journal publishers, and tax professionals

Classify each publication separately by format, content, and frequency. A qualifying journal series does not automatically extend periodical treatment to an annual directory, treatise, or text.

Common questions

Q: Which publications qualified?

A: The 13 monthly or bimonthly journals and the monthly employment bulletin.

Q: Did the annual directory qualify?

A: No. It failed the historical frequency standard.

Q: What about treatises or texts?

A: The opinion said they would be taxable.

Citations and references

• Former California Revenue and Taxation Code § 6362
• Former California Sales Tax Ruling 50

Source

• Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
• Annotation page: Annotation 385.1860
• Original supporting opinion: 385.1860 PDF

Original ruling text

385.1860

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

November 14, 1967

Gentlemen:
Your letter of October 31, 1967 to Mr. D. L. Farnsworth has been referred to this office for reply. You ask whether certain publications issued by your organization are exempt from California sales and use tax. The 13 journals published either bi-monthly or monthly and the employment bulletin published monthly come within the definition of periodicals as set forth in Ruling 50 and are, therefore, exempt under Section 6362 of the Sales and Use Tax Law. The directory, which is issued annually, does not meet the frequency of publication standards set forth in Ruling 50 and is subject to tax. We should further point out that if your association distributes publications in the nature of treatise or texts, these also would be subject to tax. Mr. Farnsworth's letter of August 21, 1967, accurately sets forth the reasons for concluding that you are a retailer engaged in business in this state. Should you have further questions, please feel free to write.

Very truly yours,

T. P. Putnam
Tax Counsel

By A. Wells Petersen
AWP :mh [lb]