Is a singles newsletter that is mostly directory listings exempt from New York sales tax as a periodical?

Plain-English summary

Debbi Ann Ascher publishes "The Matchmaker," a newsletter for Jewish singles, divorcees, and widows. It contains a singles directory, a listing of singles' events, personal messages, and an "Open Forum" of articles by different authors. In the sample issue, only about 1½ of 20 pages are articles; 15 pages are listings of people and events, and 3½ pages are about the newsletter itself. She asked whether her sales of it are exempt as a periodical under Tax Law § 1115(a)(5).

The Department said no. It walked through the five requirements for a periodical in Regulation § 528.6(c)(1) and found that "The Matchmaker" meets all of them: it is published six times a year (at least four), it isn't a book, it's available to the public by subscription, it has continuity of title and content, and it carries a variety of articles by different authors.

But meeting the definition isn't enough. Regulation § 528.6(c)(3)(ii) says nothing in the section exempts as a periodical any "listings and compilations which constitute information services." Because "The Matchmaker" is predominantly listings — 15 of 20 pages — it falls within that exception. So it does not qualify as a periodical, and receipts from selling it are taxable.

What this means for you

Meeting the periodical definition doesn't guarantee the exemption

A publication can satisfy every element of the § 528.6(c)(1) periodical definition and still be taxable if it fits one of the § 528.6(c)(3) exceptions. The exceptions — advertising material, listings/compilations that are information services, and books issued in installments — override the general definition.

Directory-heavy publications are information services

When the bulk of a publication is listings (names, contacts, events, classifieds) rather than editorial content, the Department treats it as a compilation that constitutes an information service, which is taxable. Here the tell was the page count: 15 of 20 pages were listings. The handful of articles didn't change the character of the publication.

Publishers: look at the substance, not the format

Calling something a "newsletter" and publishing it on a schedule won't secure the periodical exemption if its real function is to deliver a directory or database in print. If you sell a listings-driven publication, plan for it to be taxable as an information service.

Common questions

Q: Did "The Matchmaker" meet the definition of a periodical?
A: Yes — it met all five general requirements in Regulation § 528.6(c)(1).

Q: Then why isn't it exempt?
A: Because it is mostly listings, it falls within the § 528.6(c)(3)(ii) exception for listings and compilations that constitute information services, which are not exempt periodicals.

Q: How much of it was listings?
A: About 15 of 20 pages were listings of people and events; only about 1½ pages were articles.

Q: So are the sales taxable?
A: Yes. Because it doesn't qualify as a periodical, receipts from selling it are subject to sales tax.

Citations and references

Statutes, regulations, and authorities:

• Tax Law § 1115(a)(5) (exemption for newspapers and periodicals)
• Sales and Use Tax Regulations § 528.6(c)(1) (five general requirements to be a periodical)
• Sales and Use Tax Regulations § 528.6(c)(3)(ii) (listings and compilations that constitute information services are not exempt periodicals)

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao_1992.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a92_20s.pdf

Original ruling text

New York State Department of Taxation and Finance

Taxpayer Services Division
Technical Services Bureau

TSB-A-92 (20)S
Sales Tax
March 6, 1992

STATE OF NEW YORK
COMMISSIONER OF TAXATION AND FINANCE
ADVISORY OPINION

PETITION NO. S911029A

On October 29, 1991 a Petition for Advisory Opinion was received from Debbi Ann Ascher,
P.O. Box 1198, Scarsdale, New York 10583.
The issue raised by Petitioner, Debbi Ann Ascher, is whether the receipts from the sale of
a newsletter entitled "The Matchmaker" are exempt from the sales tax under Section 1115(a)(5) of
the Tax Law as a periodical.
The Matchmaker is a newsletter for Jewish singles, divorcees and widows. It contains a
Jewish singles directory, a listing of Jewish singles' events and personal messages. Its "Open Forum"
section contains articles by different authors relating to items of interest for singles.
Of 20 pages in the sample issue, only 1 1/2 pages consist of articles by various authors. The
balance of the newsletter consists of 15 pages listing persons interested in meeting other singles and
singles' events and 3 1/2 pages of information relative to the newsletter itself.
The Matchmaker:
1)
2)
3)
4)
5)

is published six times a year.
does not either singly or, when successive issues are put together, constitute a book.
accepts subscriptions from anyone who wishes and who pays the subscription fee.
has title and general content that remains the same from issue to issue.
contains a variety of articles by different authors relating to items of interest to
singles.

Section 1115(a)(5) of the Tax Law exempts newspapers and periodicals from sales tax.
The definition of the term "periodical" as contained in Section 528.6 of the Sales and Use
Tax Regulations 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;

-2­
TSB-A-92 (20)S
Sales Tax
March 6, 1992
(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.
*

*

*

(3)
Nothing in this section shall be construed to exempt as a periodical
the following:
(i) advertising material, such as catalogs, flyers, pamphlets
and and brochures;
(ii) listings and compilations which constitute information
services;
(iii) publications which are issued at stated intervals but
which are books or parts of a book.
Upon review of "The Matchmaker" it is determined that although it meets all of the criteria
as set forth in Section 528.6(c)(1) of the Sales and Use Tax Regulations, it does not qualify as a
periodical because it falls within the exception set forth in Section 528.6(c)(3)(ii) of said Regulations
which excludes listings and compilations which constitute information services.

DATED: March 6, 1992

s/PAUL B. COBURN
Deputy Director
Taxpayer Services Division

NOTE: The opinions expressed in Advisory Opinions
are limited to the facts set forth therein.