Did a redacted hard-bound condensed-book series qualify as an exempt periodical after the books-complete-in-themselves rule changed?

Plain-English summary

Audit Evaluation and Planning asked Legal Division to remove a redacted condensed-book series from Annotation 385.2101's exempt list. CDTFA's current 385.2110 nonperiodical list identifies Reader's Digest Condensed Books with the memorandum's exact August 18, 1982 date; the source redacts the association and title.

The old listing relied on Gary Jugum's October 4, 1973 memorandum, which had classified the series as exempt both before and after March 9, 1966. The source calls that date the effective date of amendments to Regulation 1591 excluding “books complete in themselves.”

On January 2, 1975, Leslie Clarke told the redacted publisher that a September 12, 1958 exempt opinion was no longer valid. Glenn Rigby affirmed Clarke's view in a January 21 memorandum.

The books were hard-bound anthologies of abridged stories without continuing features. California treated them as books rather than magazines and as books complete in themselves, so their sales were taxable.

The redacted entity had collected and reported use tax on the condensed books since April 1, 1975. The 1982 memorandum agreed that the series should be removed from the older exempt-publication annotation.

Source and live-annotation limits

The official PDF does not include the September 12, 1958 opinion; October 4, 1973, January 2, 1975, January 21, 1975, or October 28, 1981 memoranda; any condensed book or story; issue, binding or continuing-feature records; publisher or account records; Regulation 1591 text or amendment; invoices, sales or uses, returns, collected or reported use-tax records, tax calculations or payments, audit, assessment, claim, appeal, annotation-edit record, or later outcome. The association, book title in the source, account, purchasers, transactions, quantities, prices, and tax amounts are redacted or unidentified.

The memorandum's From line names Mary C. Armstrong, but it ends JBA:ba. It prints Regulation 1591, while the current annotation collection and live 385.2110 list refer to Regulation 1590. The original-text section preserves those forms rather than changing the regulation number or authorship initials.

The live annotation is a broader list of publications not considered newspapers or periodicals under Regulation 1590. It supplies Reader's Digest Condensed Books with the opinion's August 18, 1982 date. It omits the request, recipient and author, redacted association and account, earlier exempt listing and five cited prior documents, printed Regulation 1591 and March 9, 1966 amendment history, hard binding, abridged stories, lack of continuing features, use-tax reporting since April 1, 1975, deletion agreement, missing records, initials mismatch, and absent outcome. Its other titles are not supported by this linked condensed-book memorandum.

What this means for you

Anthology publishers, book clubs, and tax professionals

Preserve every volume and story, binding and format evidence, continuing-feature and series records, publication schedule, prior guidance and later correction, contracts, invoices and sales, returns, tax calculations, collected and reported tax, and payments. Check current law and later agency corrections before using an old list.

Common questions

Q: What physical and editorial features mattered?

A: The books were hard-bound anthologies of abridged stories and lacked continuing features.

Q: How did California classify them?

A: As taxable books complete in themselves, not exempt periodicals.

Q: What correction did the memorandum approve?

A: Deleting the redacted series from the older exempt-publication annotation.

Q: What title does CDTFA's live list supply?

A: Reader's Digest Condensed Books, with the memorandum's August 18, 1982 date.

Q: Does the source include the five earlier opinions or memoranda?

A: No.

Q: Which regulation number does the source print?

A: Regulation 1591. The live list says Regulation 1590; this page preserves the conflict.

Citations and references

• California Sales and Use Tax Regulation 1591, as amended effective March 9, 1966, described in the source
• California Sales and Use Tax Regulation 1590 — cited by the live list, not the memorandum
• September 12, 1958 opinion and October 4, 1973, January 2, 1975, January 21, 1975, and October 28, 1981 memoranda — described but not included
• Condensed books, publisher and tax records, annotation correction, and outcome — described or implicated but not documented

Verbatim support

From the official Legal Division memorandum:

The reasons given were that R---’s D--- C--- B--- have the characteristics of books rather than of magazines and are hard-bound anthologies of abridged stories, without continuing features.

As such, the R---’s D--- C--- B--- are “books complete in themselves” and tax applies to their sale.

We are, therefore, in agreement with the suggestion from Audit Evaluation and Planning that R---’s D--- C--- B--- should be deleted from Annotation 385.2101.

Source

• Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
• Annotation page: Annotation 385.2110
• Original supporting opinion: 385.2110 PDF

Original ruling text

State of California

Board of Equalization
Legal Division

Memorandum

To:

Mr. Donald J. Hennessy

From:

Mary C. Armstrong

Subject:

Annotation 385.2101
R---’s D--- A---. Inc.
SC --- XX XXXXXX

385.2110
Date:

August 18, 1982

On October 28, 1981, we received a memorandum from the Audit Evaluation and Planning Unit regarding Annotation 385.2101 which lists R---’s D--- C--- B--- as an exempt periodical. The listing was based on a memorandum dated October 4, 1973 from Mr. Gary Jugum which concluded that R---’s D--- C--- B--- qualified as an exempt periodical both before and after March 9, 1966. March 9, 1966 was the effective date of the amendments to Sales and Use Tax regulation 1591 excluding “books complete in themselves.” On January 2, 1975 Mr. Leslie Clarke wrote R---’s D--- stating that a previous opinion issued by the legal staff on September 12, 1958 that R---’s D--- C--- B--- qualified as exempt periodicals was no longer valid and that the legal staff was of the opinion that the R---’s D--C--- B--- did not qualify as exempt periodicals. The reasons given were that R---’s D--- C--B--- have the characteristics of books rather than of magazines and are hard-bound anthologies of abridged stories, without continuing features. As such, the R---’s D--- C--- B--- are “books complete in themselves” and tax applies to their sale. Mr. Clarke’s opinion was affirmed by a memorandum from Mr. Glenn Rigby dated January 21, 1975. R---’s D--- has been collecting and reporting use tax on the condensed books since April 1, 1975. We are, therefore, in agreement with the suggestion from Audit Evaluation and Planning that R---’s D--- C--- B--- should be deleted from Annotation 385.2101. If you have further questions concerning this matter, we will be happy to discuss them with you. JBA:ba