Did an eight-page monthly alert analyzing new estate, gift, insurance, will, trust, and probate cases qualify as an exempt periodical?

Plain-English summary

A redacted publisher planned to add a new publication to its product line. The source redacts most of the title; CDTFA's live annotation identifies it as Research Institute Estate Planners Alert.

The proposed monthly alert would be about eight pages long. Its editorial staff would write articles analyzing new court cases affecting estates, gifts, insurance, wills, trusts, probate, and related subjects.

California concluded that the regularly issued monthly publication qualified for the newspaper and periodical exemption under former Revenue and Taxation Code section 6362 and Regulation 1590.

The publisher also planned to mail it under second-class postal regulations. Tax Counsel concluded that the publication would qualify under former section 6362 and Regulation 1590 and sent the requested copy of the controlling regulation.

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 1976 opinion does not establish current exemption treatment.

The official 385.1872 PDF does not include the July 22 request, publication, any issue, title except the redacted ending “Alert,” articles, court cases, editorial process or staff identities, publication schedule records, second-class postal application or mailing records, products, contracts, prices, invoices, sales or uses, returns, exemption documentation, tax calculations or payments, audit, assessment, claim, appeal, requested Regulation 1590 enclosure, or later outcome. The publisher, personnel, readers, transactions, and amounts are redacted or unidentified.

The source prints etc. the publication, sales and used taxes, for your references, and j: alicetiltion. The original-text section preserves those forms rather than silently correcting the official record.

The live annotation supplies the complete title and preserves the monthly schedule, regular-basis periodical result, date, and sales-and-use-tax exemption. It omits the request and personnel, redacted publisher, proposed product status, approximate length, editorial authorship, court-case and subject detail, second-class mailing plan, former section 6362 and Regulation 1590, requested enclosure, later 2002 warning, missing records, redactions, source forms, and absent outcome.

What this means for you

Professional publishers and tax professionals

Keep every issue, article and case source, editorial records, publication and delivery schedules, postal or carrier records, subscription terms, contracts, invoices and sales, returns, exemption documents, tax calculations, and payments. Apply the current periodical exemption rather than relying on the 1976 result alone.

Common questions

Q: Did the monthly alert qualify?

A: Yes.

Q: What content did it contain?

A: Articles analyzing new cases affecting estate-planning subjects.

Q: How often was it issued?

A: The publisher proposed monthly publication; the source does not document an actual launch.

Q: Did the supporting opinion print the full title?

A: No. The official live annotation supplies Research Institute Estate Planners Alert; the opinion redacts most of the name.

Q: Did Tax Counsel review a published issue?

A: The opinion describes a publication the company planned to introduce and does not say an issue was enclosed.

Citations and references

• Former California Revenue and Taxation Code § 6362
• California Sales and Use Tax Regulation 1590
• California Revenue and Taxation Code § 6362.7 and Regulation 1590 — discussed in the February 5, 2002 staff email published with Annotation 385.0920
• July 22 request, publication and articles, court cases, mailing records, regulation enclosure, sales, tax records, and outcome — described or implicated but not documented

Verbatim support

From the official Tax Counsel opinion:

This publication will consist of approximately eight pages containing a variety of articles written by editorial staff members of --- on analyses of new court cases affecting estates, gifts, insurance, wills, trusts, probate, etc. the publication will be issued on a monthly basis and will be mailed under second-class postal regulations.

We are of the opinion that your publication will qualify for exemption from California sales and used taxes under Revenue and Taxation Code Section 6362 and our Regulation 1590 “Newspapers and Periodicals,” with which your office is familiar.

Source

• Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
• Annotation page: Annotation 385.1872
• Original supporting opinion: 385.1872 PDF

Original ruling text

385.1872

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

bc:

Out-of-State – District Administrator
New York

(916) 445-2641

August 4, 1976

Dear: --This is in response to your letter of July 22, 1976.
We understand the --- --- --- America, Inc. (referred to hereafter as ---) will be introducing a new publication into its products line soon. This publication is called --- --- --Alert.” This publication will consist of approximately eight pages containing a variety of articles written by editorial staff members of --- on analyses of new court cases affecting estates, gifts, insurance, wills, trusts, probate, etc. the publication will be issued on a monthly basis and will be mailed under second-class postal regulations. We are of the opinion that your publication will qualify for exemption from California sales and used taxes under Revenue and Taxation Code Section 6362 and our Regulation 1590 “Newspapers and Periodicals,” with which your office is familiar. We are furnishing a copy of the regulation to you for your references in accordance with your request that we provide you with a copy of the controlling authority. Very truly yours,

Gary J. Jugum
Tax Counsel

j: alicetiltion
Enclosed