Was a 208-page directory listing contracted medical providers by name, address, and specialty a printed sales message?
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This page answers the general question as of 1993. Ask about yours and see what current California tax law says, with citations.
Plain-English summary
A Board audit office asked whether a 208-page health-plan network directory qualified as a printed sales message. It listed contracted medical providers' names, addresses, and specialties. Providers and plan enrollees used it to make referrals within the network.
The Legal Division concluded that the directory was informational. Its listings did not advertise or promote the sale of goods or services, so it did not qualify under section 6379.5 and Regulation 1541.5(a)(1).
CDTFA separately publishes substantially the same May 26, 1993 medical-directory analysis under Annotation 432.0032.400. Each annotation retains its own official source URL.
What this means for you
Health plans, directory publishers, printers, and tax professionals
Paid or business-related provider information is not automatically advertising. Examine whether the listings merely help users navigate a network or actively promote purchases of particular goods or services.
Common questions
Q: What information appeared in the directory?
A: Provider names, addresses, and medical specialties.
Q: How was the directory used?
A: Contracted providers and health-plan enrollees used it to make referrals within the network.
Q: Why was it not a printed sales message?
A: The listings were informational and did not advertise or promote sales.
Citations and references
- California Revenue and Taxation Code § 6379.5
- California Sales and Use Tax Regulation 1541.5(a)(1)
Source
- Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
- Annotation page: Annotation 432.0030
- Original supporting memorandum: 432.0030 PDF
Original ruling text
State of California
Board of Equalization
Legal Division
432.0030
Memorandum
To:
From:
Subject:
REDACTED TEXT
Date:
May 26, 1993
Ronald L. Dick
Senior Staff Counsel
REDACTED TEXT
This is in in reply to your April 2, 1993 memorandum regarding the application of sales and use tax to sales of a network directory to REDACTED TEXT. You asked whether the directory qualifies as a "printed sales message" as defined at subdivision (a)(1) of Sales and Use Tax Regulation 1541.5. You sent a copy of the directory for our review. It consists of 208 pages of listings of the name, address, and specialty of medical service providers who have contracted with REDACTED TEXT. Ms. REDACTED TEXT, Director of Member Services for REDACTED TEXT, explained in a February 19, 1993 letter that the contracted providers and the health plan enrollees depend on the directory in making referrals within the network. After reviewing the copy of the directory you sent, we believe that it does not qualify as a "printed sales message." Revenue and Taxation Code section 6379.5 provides the exemption for catalogs, letters, circulars, brochures, and pamphlets consisting substantially of printed sales messages for goods and services. We believe that the directory you sent provides only informational listings. The listings do not advertise or promote the sale of goods or services. If you have further questions regarding this, feel free to write again. RLD:sr
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