Did the monthly San Diego Live theater guide qualify as an exempt periodical when its reviewed issues stayed within the advertising limit?

Plain-English summary

A redacted California requester sought a legal opinion about sales tax on San Diego Live. Tax Counsel reviewed three absent copies described as a monthly guide to live theater in the San Diego area.

The guide appeared at stated monthly intervals, contained information of general interest to the area's theater-going public, and showed subject-matter continuity across issues.

Advertising, including product publicity under the quoted rule, did not exceed 90 percent of printed area in the three samples. Assuming other issues used the same advertising-percentage format, Tax Counsel concluded that the publication qualified under the former periodical exemption.

Later authority and source limits

The live annotation carries a “Subsequent statutory change” note. 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 1989 opinion does not establish current exemption treatment.

The official 385.1879 PDF does not include the request, three sample issues, theater information, articles, publication or delivery records, advertising or product-publicity measurements, business or account records, Regulation 1590 enclosure, prices, invoices, sales or uses, returns, exemption documentation, tax calculations or payments, audit, assessment, claim, appeal, identified subsequent statutory change, or later outcome. The requester, business, district administrators, readers, transactions, quantities, prices, advertising percentages, and tax amounts are redacted or unidentified.

The source prints Regulation 1590 (enclosed) defines “periodicals” as”, some connections, and ends its exemption sentence without a period. The original-text section preserves those forms rather than silently correcting the official record.

The live entry preserves the title, monthly schedule, San Diego theater-going audience, three samples, subject-matter continuity, advertising result and assumption, date, conditional exemption, and later-change warning. It omits the request and counsel, redacted business and account, section 6051 presumption and former section 6362, full Regulation 1590 tests, absent enclosure and other records, redacted copied officials, source forms, and absent outcome.

What this means for you

Event-guide publishers and tax professionals

Retain every issue, article and format, publication and delivery schedules, advertising and product-publicity measurements for the full testing period, subscriptions, contracts, invoices and sales, returns, exemption documents, tax calculations, and payments. Apply current law.

Common questions

Q: Did San Diego Live qualify as a periodical?

A: Yes.

Q: Was the conclusion based on every issue?

A: No. Counsel reviewed three and assumed the others followed the same advertising format.

Q: Did the source show the three samples or their measurements?

A: No. It reported the review and result but did not reproduce the issues or calculations.

Q: Does the live entry warn of later law?

A: Yes. It notes a subsequent statutory change without identifying it.

Citations and references

• Former California Revenue and Taxation Code §§ 6051 and 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
• Request, samples, advertising and publication records, Regulation 1590 enclosure, sales, tax records, and outcome — described or implicated but not documented

Verbatim support

From the official Tax Counsel opinion:

The publication “San Diego Live” qualifies as a tax exempt periodical. It is issued once a month and contains information of general interest to the theatre going public in the San Diego area. The different issues have a continuity of subject matter as monthly theater guides.

Advertising does not exceed 90% of the printed area in the three issues you provided. Assuming that other issues follow the same format with respect to percentage of advertising, sales of this publication are tax exempt

Source

• Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
• Annotation page: Annotation 385.1879
• Original supporting opinion: 385.1879 PDF

Original ruling text

385.1879

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION
1020 N STREET, SACRAMENTO, CALIFORNIA
(P.O. BOX 942879, SACRAMENTO, CALIFORNIA 94279-0001)
(916) 327-3400

July 18, 1989

Ms. E--- B. J--XXXX --- #XX
--- ---, California XXXXX

K--- and K--SR -- XX-XXXXXX

Dear Ms. J---:
I am writing in response to your request for a legal opinion regarding the applicability of sales tax to sales of “San Diego Live.” You enclosed three copies of this publication, which can be described as a monthly guide to live theatre in the San Diego area. Except where sales are specifically exempted by statute, sales tax applies to the gross receipts of retailers from all retail sales of tangible personal property in this state. (Rev. & Tax. Code § 6051.) However, sales of periodicals “regularly issued at average intervals not exceeding three months” are exempt from sales tax. (Rev. & Tax. Code § 6362.) Sales and Use Tax Regulation 1590 (enclosed) defines “periodicals” as” “… those publications which appear at stated intervals, each issue of which contains news or information of general interest to the public, or to some particular organization or group of persons. Each issue must bear a relationship to prior or subsequent issues in respect to continuity of literary character or similarity of subject matter, and there must be some connections between the different issues of the series in the nature of the articles appearing in them. Each issue must be sufficiently similar in style and format to make it evident that it is one of a series.” The term does not include publications “of which the advertising portion, including product publicity, exceeds 90 percent of the printed area of the entire issue in more than one-half of the issues during any 12-month period.” The publication “San Diego Live” qualifies as a tax exempt periodical. It is issued once a month and contains information of general interest to the theatre going public in the San Diego area. The different issues have a continuity of subject matter as monthly theater guides.

Ms. E--- B. J---

-2-

July 18, 1989
385.1879

Advertising does not exceed 90% of the printed area in the three issues you provided. Assuming that other issues follow the same format with respect to percentage of advertising, sales of this publication are tax exempt If you have further questions concerning this matter, please feel free to write again. Sincerely,

Stella Levy
Tax Counsel

SCL:cl
Enclosure
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--- --- District Administrator
--- --- District Administrator