Was the separately sold advertising space on a publisher's maps subject to sales tax?

Plain-English summary

A map publisher had collected sales-tax reimbursement on advertising-space charges that were separate from sales of the maps themselves.

The letter explained that section 6051 taxed retail sales of tangible personal property. It treated the advertising space itself as something other than tangible personal property.

Tax therefore did not apply to the publisher's separately sold map-advertising space. The source did not decide the tax treatment of the maps or any other transferred property.

Citations and references

• California Revenue and Taxation Code § 6051

Source

• Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
• Annotation page: Annotation 540.0020
• Original supporting opinion: 540.0020 PDF

Original ruling text

540.0020

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

October 8, 1962

R--- M--- Company
XXX --- Street
--- ---, CA XXXXX
Attention: Mr. D--- R. B---

Gentlemen:
This is in reply to your request of September 21, 1962 for information regarding the applicability of tax to the sale of advertising spaces on your maps. As we understand the facts, you have collected tax reimbursement on the sale of advertising spaces themselves apart from the sale of the maps. Section 6051 of the Sales and Use Tax Law (copy enclosed) imposes a tax on the retailer for the privilege of selling tangible personal property at retail. However, since the sale of the advertising space itself does not constitute a sale of tangible personal property, we are of the opinion tax will not apply to your sale of advertising spaces on your maps. Very truly yours,

E. H. Stetson
Tax Counsel
By____
Charles C. Kobayashi

CCK:ls
Enclosure
cc:

--- --- – District Administrator