Can a publisher treat several differently-named weekly shopping guides as geographical editions of one shopping paper for the sales tax exemption?

Plain-English summary

Lee Publications puts out four weekly shopping guides (the Monday Editor, Mohawk Valley Pennysaver, Mountain Pennysaver, and Ulster County Request), each serving a different local market. It wanted them treated as geographical editions of a single "shopping paper," so that together they'd count as one issue when applying the shopping-paper exemption in Tax Law 1115(i) (which exempts qualifying shopping papers and the printing services to publish them, subject to tests like the 90%-advertising cap and news-content requirements).

The Department said the four guides don't qualify as one paper:

• Same-paper editions need shared content continuity. Under Tax Law 1115(i) and TSB-M-92(5)S, different geographical editions of the same shopping paper are treated as a single issue only if they share continuity as to their features.
• These publications weren't consistent. The Monday Editor had dedicated sections for national, state, and local news, weather, sports, editorials, advice columns, and obituaries. The other three guides (mostly advertising with a page or two of community notes) did not.
• Result: not a single issue. Because the four publications lacked shared content continuity, they are not different geographical editions of the same shopping paper and cannot be combined as one issue for purposes of the section 1115(i) exemption tests.

What this means for you

Publishers of shoppers, pennysavers, and free community papers

If you want multiple local editions aggregated as one "shopping paper" to meet the section 1115(i) tests, the editions must share continuity of content -- the same kinds of news, features, and sections from edition to edition. Editions that differ sharply (one is a real community newspaper, the others are mostly ads) won't be combined.

The exemption is tested per issue

Because the shopping-paper tests (advertising cap, community news, numerous unrelated advertisers, etc.) apply per issue, whether editions can be treated as one issue can determine whether a publication qualifies. Structure and content matter.

Different names or volume numbers need advance permission

Under the Department's memorandum, editions with different names or volume numbers can be treated cumulatively only if you request and obtain permission from the Technical Services Bureau, substantiating the reason for the difference.

Common questions

Q: I publish several local shoppers -- can I treat them as one paper for the exemption?
A: Only if they share continuity of content as geographical editions. Here they didn't, so they couldn't be combined.

Q: What broke the continuity?
A: One guide carried full news, weather, sports, editorial, and obituary sections; the others were mostly advertising with minimal community content.

Q: My editions have different names -- does that automatically disqualify them?
A: Not automatically, but you must get permission from the Technical Services Bureau to treat differently-named editions as a single issue, with substantiation.

Q: Can I rely on this opinion?
A: It binds the Department only as to the petitioner and the facts described. Treat it as guidance and confirm your own facts.

Citations and references

• Tax Law section 1115(i) (exemption for shopping papers and printing services to publish them)
• Technical Services Bureau Memorandum TSB-M-92(5)S (geographical editions of shopping papers)

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao_1993.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a93_33s.pdf

Original ruling text

New York State Department of Taxation and Finance

Taxpayer Services Division
Technical Services Bureau

TSB-A-93 (33)S
Sales Tax
May 7, 1993

STATE OF NEW YORK
COMMISSIONER OF TAXATION AND FINANCE
ADVISORY OPINION

PETITION NO. S930122A

On January 22, 1993, a Petition for Advisory Opinion was received from Lee Publications,
Inc., P.O. Box 121, West Grand Street, Palatine Bridge, New York 13428.
The issue raised by Petitioner, Lee Publications, Inc., is whether the four weekly shopping
guides it publishes qualify as geographical editions of the same "shopping paper" and, therefore, are
deemed to be a single issue of the shopping paper for the purpose of determining if the publication
qualifies for exemption from sales and use taxes pursuant to Section 1115(i) of the Tax Law.
As part of its Petition, Petitioner submitted copies of the May 21, 1990 editions of the
Mohawk Valley Pennysaver, the Monday Editor, the Mountain Pennysaver, and the Ulster County
Request, now known as the Apple Valley Shopper.
The Monday Editor is published every Monday, fifty-two weeks per year, and, although the
masthead states that each issue costs thirty-five cents, it is distributed free to every home in the
Schoharie and Northern Delaware County area. It has continuity as to its title and content from issue
to issue. The Monday Editor contains news of general and community interest by different authors,
as well as, national, State, and local news, weather and sports, editorials, advice columns and
obituaries. It does not constitute a book, either simply or if successive issues were put together.
Every issue contains advertisements from hundreds of unrelated advertisers, but less than 90% of
the printed area is advertisements. The masthead states that it is the "hometown daily newspaper for
Schoharie and Northern Delaware Counties" and it is in the sectional format of a typical newspaper.
The edition submitted contained forty-six pages.
The Mohawk Valley Pennysaver is published and distributed free each week to homes in the
Palatine Bridge, New York area. Of the twenty-four pages printed, a combined area making up one
page contains "lawn and garden" news, fishing contest results and girl scout events. The remaining
pages contain various advertising.
The Mountain Pennysaver is published and distributed free each week to residents in the
Catskill, New York area. The publication contains forty eight pages, of which two pages contain
community notes and the remaining printed area of the publication is advertising.
The Ulster County Request is published and distributed free each week to residents in the
Saugerties, New York area. The publication has twenty-eight pages of printed material containing
various articles of community interest and advertisements. The Ulster County Request is dated
Sunday, May 20, 1990, but was delivered by the U.S. Postal Service on Monday, May 21, 1990.

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Sales Tax
May 7, 1993
The separate geographic editions and separate names of the publications are due to location
and market area forces. The sole purpose of the geographic editions is to allow Petitioner to offer
zoned areas for some of the advertisers as well as total market coverage for the advertisers that
require it. The format or appearance of each zoned edition is tailored to particular local market.
Formats are chosen based on the needs of the local advertisers as well as the competition present in
the local market. Many of the advertisers run advertisements in all of geographic edition
publications.
Section 1115(i) of the Tax Law provides as follows:
(i)(A) Receipts from the retail sale of a shopping paper to the publisher of
such publication shall be exempt from the tax imposed by subdivision (a) of section
eleven hundred five and receipts from the sale of printing services performed in
publishing such paper shall be exempt from the tax imposed by paragraph two of
subdivision (c) of such section.
(B) For purposes of this subdivision, the term "shopping paper" shall mean
those community publications distributed to the public, without consideration, for
purpose of advertising and public information. To qualify as a shopping paper for
purposes of this subdivision the publication must also:
(1) be distributed to the public on a community-wide basis;
(2) be published at stated intervals at least fifty times a year;
(3) have continuity as to title and general nature of content from issue to
issue;
(4) contain in each issue news of general or community interest and
community notices or editorial comment or articles by different authors;
(5) not constitute a book either singly or when successive issues are put
together;
(6) contain in each issue advertisements from numerous unrelated
advertisers;
(7) be independently owned in that the publication is not owned by or under
the control of the owners or lessees of a shopping center or a merchants association
or similar entity or a business which sells property or services (other than advertising)
and the advertisements in such publication are not predominantly for the property or
services sold by such business; and
(8) meet the requirement set forth in subparagraph (C) of this subdivision.

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(C) The advertisements in such publication shall not exceed ninety percent
of the printed area of each issue.
(D) The term "shopping paper" shall not include mail order and other
catalogs, advertising fliers, travel brochures, house organs, theatre programs,
telephone directories, shipping and restaurant guides, racing tip and form sheets,
shopping center advertising sheets and similar publications.
Technical Service Bureau Memorandum, TSB-M-92(5)S provides, in part, as follows:
Geographical Editions
Different geographical editions of the same paper appearing under the same
shopping paper name, under the same date and bearing the same, if any, volume
number, are deemed to be a single issue of the shopping paper for the purpose of
determining if the publication qualifies as an exempt shopping paper under section
1115(i) of the Tax Law.
In some instances, for copyright or other specific purposes, an edition in a
particular geographical location may bear a different name and/or volume number
other than editions owned and issued by the same publisher under the same date. In
such cases, upon request, permission may be given to treat all such shopping papers
cumulatively as a single issue for purposes of determining if the publication qualifies
as an exempt shopping paper under section 1115(i) of the Tax Law.
Requests are to be made, in writing to:
NYS Tax Department
Technical Services Bureau
Sales Tax Instructions and Interpretations
Building 9
W. A. Harriman Campus
Albany, NY 12227
Specifics must be provided substantiating the reason(s) for the different name
and/or volume number. Unless permission is obtained from the Technical Services
Bureau, the same name, date of issue and volume number, if any, are required in
order for different editions to be cumulatively as a single issue for purposes of
applying the tests for a shopping paper as set forth in the Tax Law. (emphasis added)
In order to constitute different geographical editions of the same shopping paper each
publication must have continuity as to the features each publication contains. While the Mohawk
Valley Pennysaver, the Mountain Pennysaver and the Ulster County Request contain community
interest articles, neither of the publications have specific sections of the publication dedicated to
national, State and local news, weather and sports, editorials, advice columns and obituaries as does
the Monday Editor. Accordingly, pursuant to Section 1115(i) of the Tax Law and TSB-M-92(5)S
the four shopping guides Petitioner publishes do not constitute different geographical editions of the

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Sales Tax
May 7, 1993
same shopping paper and as such are not deemed to be a single issue of the shopping paper for the
purpose of determining if a publication qualifies as an exempt shopping paper.

DATED: May 7, 1993

/s/
PAUL B. COBURN
Deputy Director
Taxpayer Services Division

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