Are comic books, graphic novels, and trade paperbacks exempt from NY sales tax as periodicals?

Plain-English summary

A retailer of comics asked whether comic books, graphic novels, and trade paperbacks are exempt from sales tax. The answer turns on whether each is a periodical or a book.

The law: Tax Law 1115(a)(5) exempts newspapers and periodicals. A periodical (20 NYCRR 528.6) must be published at stated intervals at least four times a year, must not constitute a book, must circulate to the public, have continuity of title/content, and carry a variety of articles. A comic book published serially under the same title at least quarterly is an exempt periodical (528.6(c)(3), Example 1).

The Office of Counsel concluded:

• Comic books (new issues) -- exempt periodicals. Serially published comics qualify.
• Back issues -- exempt, if priced at or below original. A back issue that would qualify as a periodical if sold new keeps the exemption as long as it's sold at a price no greater than its initial retail price. Sold above the original price, it's deemed sold as a collectible/investment item -- taxable tangible personal property (528.6(c)(4)).
• Graphic novels -- taxable. Works like Maus and Watchmen are books, not published at stated intervals, so they don't qualify as periodicals.
• Trade paperbacks -- taxable. A collection of multiple issues of a comic series is a book, not a periodical, so it's taxable.

What this means for you

Comic and book retailers

The exemption follows the format and the price, not the subject matter. Serial comics (including back issues at or below cover price) are exempt periodicals; graphic novels and trade-paperback collections are taxable books. Watch the back-issue price: the moment you sell a collectible issue above its original retail price, it flips to taxable property.

Customers

No tax on regular comic issues (or reasonably priced back issues); expect tax on graphic novels, trade-paperback collections, and premium-priced collectible back issues.

Common questions

Q: Are comic books taxable in New York?
A: Not when published serially under the same title at least four times a year -- those are exempt periodicals, including back issues sold at or below their original price.

Q: Why are graphic novels and trade paperbacks taxable?
A: They're books, not published at stated intervals, so they don't meet the periodical definition.

Q: What about a rare back issue I sell above cover price?
A: Sold above its original retail price, it's treated as a taxable collectible/investment item, not an exempt periodical.

Citations and references

• Tax Law section 1115(a)(5) (exemption for newspapers and periodicals)
• 20 NYCRR section 528.6 (definition of periodical)
• 20 NYCRR section 528.6(c)(3), Example 1 (serial comic book is a periodical)
• 20 NYCRR section 528.6(c)(4) (periodical sold above normal retail price is taxable property)

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao_2010.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a10_35s.pdf

Original ruling text

New York State Department of Taxation and Finance

TSB-A-10(35)S
Sales Tax
August 10, 2010

Office of Counsel
Advisory Opinion Unit
STATE OF NEW YORK
COMMISSIONER OF TAXATION AND FINANCE
ADVISORY OPINION

PETITION NO. S100302B

On March 2, 2010, the Department of Taxation and Finance received a Petition for Advisory
Opinion from name and address redacted. Petitioner asks whether receipts from the sale of graphic novel
comic books, trade paperbacks that contain multiple issues of comic books, and single back issues of comics
are subject to sales tax.
We conclude that back issues of comics published at stated intervals at least four times a year are
exempt from sales tax as periodicals if sold at a price not greater than the original retail sales price. Graphic
novels and trade paperbacks do not qualify as periodicals; therefore, the receipts from their sale are subject to
sales tax as the sale of tangible personal property.
Facts
Petitioner submitted the following facts as the basis for this Advisory Opinion.
Petitioner sells comic books, graphic novels, and trade paperbacks. Most of Petitioner’s comic book
sales are of new issues. Back comic book issues account for a small percentage of Petitioner’s sales receipts.
Petitioner sells some back issues of comic books at below the initial retail offering price; others are sold at a
price above the initial retail offering price.
Petitioner sells graphic novels that are in the form of comic books; these publications can be from 40
to 1000 pages in length. Each novel is an original work. Sample titles are “Maus,” “Watchmen,” and
Asdterios.”
A trade paperback is usually a collection of specific comic books from a series: 4 to 12 issues are
contained in a volume.
Analysis
Section 1115(a)(5) of the Tax Law exempts newspapers and periodicals from sales tax.
The term “periodical” is defined in section 528.6 of the sales and use tax regulations. This regulation
provides in part:
(c) Definition of a periodical. (1) In order to constitute a periodical, a publication must
conform generally to the following requirements:
(i) it must be published in printed or written form at stated intervals, at least as
frequently as four times a year;
(ii) it must not, either singly or, when successive issues are put together, constitute a
book;

TSB-A-10(35)S
Sales Tax
August 10, 2010

-2(iii) it must be available for circulation to the public;

(iv) it must have continuity as to title and general nature of content from issue to
issue; and
(v) each issue must contain a variety of articles by different authors devoted to
literature, the sciences or the arts, news, some special industry, profession, sport or other
field of endeavor.
A comic book that is published serially under the same title at least once quarterly is exempt as a
periodical. 20 NYCRR §528.6(c)(3), Example 1.
The regulations also provide that:
A publication which was originally a periodical but which is sold at a price which does not
reflect its normal retail selling price shall be deemed to be sold as tangible personal property for
collection or investment purposes and not as a periodical. 20 NYCRR §528.6(c)(4)
The sale of a new issue of a comic book published at stated intervals at least four times a year is
exempt from sales tax because the new issues qualify as periodicals. The retail sale of an old issue of a comic
book that would qualify as a periodical if sold new still qualifies for the periodical exemption if the old issue
is sold at or below its initial retail price. Petitioner’s sales of back issues of comic books that would qualify
as a periodical if sold new are subject to sales tax only if the back issue is sold at a price greater than the
initial retail price.
The retail sale of a graphic novel that is in the form of a comic book is subject to sales tax. The
novels are not published at stated intervals; they are books. As such, these publications do not satisfy the
criteria to qualify as exempt periodicals.
A trade paperback that is a collection of a specific comic book series is subject to sales tax. These
paperbacks are not published at stated intervals; they are books. As such, these publications do not satisfy the
criteria to qualify as exempt periodicals.

DATED: August 10, 2010

NOTE:

/S/
Jonathan Pessen
Director of Advisory Opinions
Office of Counsel

An Advisory Opinion is issued at the request of a person or entity. It is limited to the
facts set forth therein and is binding on the Department only with respect to the
person or entity to whom it is issued and only if the person or entity fully and
accurately describes all relevant facts. An Advisory Opinion is based on the law,
regulations, and Department policies in effect as of the date the Opinion is issued or
for the specific time period at issue in the Opinion.