Did three free advertising publications qualify for Florida's shopper exemption?

Subject

Shoppers

Plain-English summary

All three free publications qualified as exempt shoppers. One advertised apartment rentals, one advertised new homes and communities, and one advertised automobiles. Each was distributed without charge through newsstands, published regularly, and primarily composed of advertising by unrelated businesses.

What this means for you

A free specialized advertising publication could qualify when it satisfied the recurring-publication, primary-advertising, and distribution requirements.

Common questions

Q: Were readers charged? No.

Q: How were the publications distributed? Through newsstands.

Q: Did all three qualify? Yes.

Citations and references

• Fla. Stat. § 212.05 — sales and use tax
• Fla. Stat. § 212.06(16)(a), (b) — publisher use of free copies and cost price
• Fla. Stat. § 212.08(7)(w) — shopper exemption
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 00A-033

Original ruling text

SUMMARY

QUESTION: Are the taxpayer's three publications, which
primarily advertise, respectively, apartment rentals, home
sales, and automobile sales, and which are distributed via
newsstands free of charge, exempt from tax under the
provisions of section 212.08(7)(w), F.S.?

ANSWER - Based on Facts Below: Yes. Section 212.08(7)(w),
F.S., provides an exemption from tax for free, circulated
publications that are published on a regular basis, the
content of which is primarily advertising, and that are
distributed through the mail, home delivery, or newsstands.
Each of the taxpayer's publications meets all of the
requirements of the statute.

Jun 23, 2000

Re: Technical Assistance Advisement 00A-033
Sales & Use Tax - Shoppers
Sections 212.05; 212.06(16)(a),(b); 212.08(7)(w), F.S.
XXX ("Taxpayer")
Sales Tax # XX
FEI# XX

Dear :

This is in response to your request, dated March 9, 2000, for
the Department's issuance of a Technical Assistance Advisement
("TAA") concerning the above referenced party and matter. Your
letter has been carefully examined and the Department finds it
to be in compliance with the requisite criteria set forth in
Chapter 12-11, F.A.C. This response to your request constitutes
a TAA and is issued to you under the authority of section
213.22, F.S.

Facts

The Taxpayer publishes three periodicals. The first publication
is the "XXX Book." This publication is delivered via newsstands
free of charge and is published on a monthly basis. Its content
consists of advertising of various apartment communities offered
for lease by unrelated businesses. You enclosed three
consecutive issues of this publication and state that
advertising generally makes up more than 75 percent of the
content of the publication. A review of the three issues
confirms that statement.

A second publication is the "XX Magazine." It is published on a
bi-monthly basis, distributed via newsstands free of charge, and
its content consists primarily of advertising of various new
homebuilders, houses, and communities offered for sale by
unrelated businesses. The content of this publication, from
your statement and from a review of the three consecutive issues
that you provided, is substantially all advertising.

The third publication is the "XX." It also is delivered via
newsstands free of charge and is published on a weekly basis.
Its content, as determined from the three consecutive issues you
provided, consists almost entirely of advertising of used cars
and trucks being offered for sale by unrelated businesses.

Requested Advisement

Whether the Taxpayer's publications are exempt under the
provisions of section 212.08(7)(w), F.S.

Applicable Law and Discussion

Section 212.05, F.S., provides that a tax is imposed on the
sales price of each item or article of tangible personal
property sold at retail in the state. Section 212.06(16)(a),
F.S., provides that the use by the publisher of a newspaper,
magazine, or periodical of copies for its own consumption or to
be given away is taxable, if there is no retail price, at the
"cost price" of the publication. The term "cost price" is
defined in section 212.06(16)(b), F.S.

Section 212.08(7)(w), F.S., provides an exemption from the tax

otherwise imposed by the two sections mentioned above. Section
212.08(7)(w), F.S., provides that:

... Also exempt are free, circulated publications that are
published on a regular basis, the content of which is
primarily advertising, and that are distributed through the
mail, home delivery, or newsstands....

The three publications of the Taxpayer meet every requirement of
the statute. Each is distributed free of charge, each is
published on a regular basis, and each is distributed through
newsstands. The content of each, based on the issues that you
have provided, is primarily advertising. Accordingly, each of
the three publications is exempt.

We must caution you, however, that this conclusion is based on
the examination of only three issues of each publication. The
three publications will each need to continue to meet the
requirements set forth in section 212.08(7)(w), F.S., in order
for the exemption to continue.

This response constitutes a Technical Assistance Advisement
under section 213.22, F.S., which is binding on the Department
only under the facts and circumstances described in the request
for this advice, as specified in section 213.22, F.S. Our
response is predicated upon those facts and the specific
situation summarized above. You are advised that subsequent
statutory or administrative rule changes or judicial
interpretations of the statutes or rules upon which this advice
is based may subject similar future transactions to a different
treatment from that which is expressed in this response.

You are further advised that this response, your request, and
related backup documents are public records under Chapter 119,
F.S., and are subject to disclosure to the public under the
conditions of section 213.22, F.S. Confidential information
must be deleted before public disclosure. In an effort to
protect confidentiality, we request that you provide the
undersigned with an edited copy of your request for Technical
Assistance Advisement, the backup material and this response,
deleting names, addresses, and any other details that might lead

to identification of the taxpayer. Your response should be
received by the Department within 15 days of the date of this
letter.

Sincerely,

Robert D. Heyde
Senior Attorney

Control # 40584