Ezel / Tax Rulings / NE
NE 01-02-6 Sales and Use Tax 2002-09-30

Are sales of magazine and journal subscriptions subject to Nebraska sales tax, and which sellers must be licensed?

Short answer: Yes. Under Revenue Ruling 01-02-6, Laws 2002, LB 1085 repealed the exemption for subscriptions to magazines and journals issued at average intervals not exceeding one month, so beginning October 1, 2002 all sales of magazine and journal subscriptions are subject to tax regardless of the frequency of publication (magazines and journals sold other than by subscription were already taxable). Sellers of subscriptions are retailers and must collect and remit the Nebraska and applicable local option (city) sales tax on subscription sales made on and after October 1, 2002. A seller that meets any criterion in Neb. Rev. Stat. § 77-2702.06 -- such as maintaining a stock of goods, office, or place of business in Nebraska, or having an agent, representative, or solicitor (including a Nebraska telemarketing company taking orders) operating in the state -- must obtain a sales tax license and comply with the filing requirements. This supersedes Regulations 1-012.02(B) and 1-055.01.

Apply this to your situation

This page answers the general question as of 2002. Ezel answers yours, under current Nebraska tax law, with citations.

Currency note: this ruling is from 2002
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official Revenue Ruling of the Nebraska Department of Revenue, a guidance document stating the Department's interpretation of how Nebraska tax law applies. Each Nebraska guidance document carries the notice that it 'is advisory in nature but is binding on the Nebraska Department of Revenue until amended.' Unlike a private letter ruling, a Revenue Ruling is a general statement of Department policy rather than advice to a single taxpayer, but it can be amended, superseded, or made obsolete by a later ruling or a change in statute or regulation, many rulings in this series have been rescinded or superseded, so confirm it is still in effect before relying on it. Nebraska's local option sales and use taxes are administered by the Department, not self-collected by home-rule cities. This summary is informational only and is not legal or tax advice. Consult a licensed Nebraska tax professional about your situation.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.
View original ruling (PDF)

Plain-English summary

Before October 2002, Nebraska exempted subscriptions to magazines and journals that were issued at average intervals not exceeding one month (roughly, weeklies and monthlies). Nebraska's 2002 tax bill LB 1085 repealed that exemption, so beginning October 1, 2002, all sales of magazine and journal subscriptions are taxable regardless of how often the publication comes out. (Magazines and journals sold outside a subscription were already taxable.)

Who collects the tax. Sellers of magazine and journal subscriptions are retailers and must collect and remit Nebraska and the applicable local option (city) sales tax on subscription sales made on and after October 1, 2002.

Who must be licensed. A seller that meets any criterion in Neb. Rev. Stat. § 77-2702.06 must get a sales tax license and file returns. Those criteria include:

  • maintaining a stock of goods, office, place of distribution, or other place of business in Nebraska; or
  • having an agent, representative, or solicitor operating in Nebraska to sell, deliver, or take orders — including using the solicitation or order-taking services of a Nebraska telemarketing company.

Definitions. A magazine is a collection of articles on topics of general or specific interest. A journal is a publication dealing with matters of current interest for a special group, or the official records of a particular group, place, or event.

This supersedes Sales and Use Tax Regulations 1-012.02(B) and 1-055.01.

What this means for you

A publisher or subscription seller

If you sell magazine or journal subscriptions to Nebraska customers, charge Nebraska state and local city tax on subscriptions from October 1, 2002. The old "monthly-or-more-frequent" exemption is gone. If you have Nebraska property, people, or even a Nebraska telemarketer taking your orders, you likely must register and file.

A Nebraska subscriber

Expect sales tax on your magazine and journal subscriptions, at the state rate plus your city's local option rate.

Common questions

Q: Are weekly or monthly subscriptions still exempt?
A: No. Effective October 1, 2002, all magazine and journal subscription sales are taxable regardless of publication frequency.

Q: Does a city (local option) tax also apply?
A: Yes. Retailers collect the Nebraska tax and the applicable local option (city) sales tax.

Q: I'm an out-of-state publisher using a Nebraska telemarketer to take orders — do I have to register?
A: Yes. Using the solicitation or order-taking services of a Nebraska telemarketing company is one of the § 77-2702.06 criteria requiring a license and filing.

Citations and references

  • Laws 2002, LB 1085 — repealed the exemption for short-interval magazine/journal subscriptions, effective October 1, 2002.
  • Neb. Rev. Stat. § 77-2702.06 — criteria that require a seller to be licensed and file (place of business, in-state agent/representative/solicitor, Nebraska telemarketer).
  • Regs 1-012.02(B) and 1-055.01 — superseded by LB 1085.

Source

Original ruling text

REVENUE RULING 1-02-6
September 30, 2002
Sales and Use Tax - Magazine and Journal Subscriptions. EFFECTIVE OCTOBER 1, 2002, SALES
OF MAGAZINE AND JOURNAL SUBSCRIPTIONS ARE SUBJECT TO TAX REGARDLESS
OF THE FREQUENCY OF PUBLICATION.
Laws 2002, LB 1085, repealed the sales and use tax exemption for subscriptions for magazines
and journals that are issued at average intervals not exceeding one month. Therefore, beginning
October 1, 2002, all sales of magazine and journal subscriptions are subject to tax. Magazines and
journals sold through means other than subscriptions remain taxable.
Sellers of magazine and journal subscriptions are retailers and are required to collect and remit
the Nebraska and applicable local option (city) sales tax on all sales of magazine and journal
subscriptions made on and after October 1, 2002.
Sellers meeting any of the criteria listed in Neb. Rev. Stat. §77-2702.06 must comply with the
licensing and filing requirements for sales tax. Among these criteria are: maintaining a stock of
goods, office, place of distribution or other place of business in this state; or having an agent,
representative, or solicitor operating in Nebraska for the purpose of selling, delivering or taking
orders for property. Sellers utilizing the solicitation or order-taking services of a telemarketing
company located in Nebraska must be licensed and comply with the sales tax filing requirements.
A magazine is a collection of articles on topics of general or specific interest. A journal is a
publication dealing with matters of current interest for a special group or the official records of a
particular group, place or event.
Sales and Use Tax Regulations 1-012.02(B) and 1-055.01 are superseded by the provisions of
Laws 2002, LB 1085.
APPROVED:

Mary Jane Egr
State Tax Commissioner
September 30, 2002

Nebraska Department of Revenue, P.O. Box 94818, Lincoln, Nebraska 68509-4818

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