Does a weekly industry newsletter qualify as an exempt 'periodical' under New York sales tax law, and does it matter whether the publisher writes every article personally?

Subject

Whether a newsletter which Petitioner publishes known as "Sandy Parker Reports" qualifies as a periodical exempt from sales tax under Section 1115(a)(5) of the tax law.

What this means for you

A publisher puts out a weekly newsletter, "Sandy Parker Reports," covering international fur industry news. It keeps the same title and general content focus issue to issue, circulates to the general public, and doesn't add up to a "book" even across many issues put together. Some articles are written by the publisher himself; others are written by a professional journalist.

New York exempts newspapers and periodicals from sales tax, and its regulations spell out five requirements for "periodical" status: published at least quarterly, not amounting to a book, available for public circulation, consistent title/content across issues, and -- critically here -- each issue containing a variety of articles by DIFFERENT authors on some field of endeavor (industry, news, sport, etc.). Based on six sample issues submitted, this newsletter checks every box, including the different-authors requirement (since it mixes the publisher's own writing with a professional journalist's), so it qualifies as an exempt periodical. But the opinion flags a real trap: if every single article were instead written solely by the publisher himself, the newsletter would fail that same different-authors requirement and lose its exempt status entirely -- the exemption isn't guaranteed by subject matter or frequency alone.

Q&A

Q: We publish a trade/industry newsletter at least quarterly, with consistent branding and content focus -- does that automatically make it an exempt periodical? A: Not automatically, per this opinion -- you also need articles by different authors (a staff of writers preparing unsigned articles counts too), public availability, and the publication can't add up to a "book" even across issues combined.

Q: All of our newsletter's content is currently written by one single person (the publisher/owner) -- does that disqualify us from the periodical exemption? A: Yes, per this opinion -- if every article is authored solely by one person, the publication fails the "different authors" requirement in 20 NYCRR § 528.6(c)(1)(v) and would NOT qualify as an exempt periodical.

Q: Does having second-class mailing privileges from the U.S. Postal Service guarantee periodical status for sales tax purposes? A: Per this opinion and the regulation, USPS second-class classification is a factor the Department CONSIDERS in determining periodical status, but it's not described as an automatic guarantee on its own.

Citations

• Tax Law § 1115(a)(5) -- exempts newspapers and periodicals from the sales tax imposed under Section 1105(a).
• 20 NYCRR § 528.6(c) -- defines "periodical" by five criteria (frequency, not-a-book, public availability, content/title continuity, different authors), and notes USPS second-class mailing status as a relevant factor.

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao_1994.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a94_12s.pdf

Original ruling text

New York State Department of Taxation and Finance

Taxpayer Services Division
Technical Services Bureau

TSB-A-94 (12)S
Sales Tax
March 30, 1994

STATE OF NEW YORK
COMMISSIONER OF TAXATION AND FINANCE
ADVISORY OPINION

PETITION NO. S931202A

On December 2, 1993 a Petition for Advisory Opinion was received from Sanford Parker, 363 Seventh Ave., New York, New York 10001. The issue raised by Petitioner, Sanford Parker, is whether a newsletter which he publishes known as "Sandy Parker Reports" qualifies as a periodical exempt from sales tax under Section 1115(a)(5) of the tax law. Petitioner publishes a weekly newsletter known as "Sandy Parker Reports." Petitioner's publication is devoted to international fur news and is published weekly. It has continuity as to title and general nature of content from issue to issue, it is available for circulation to the general public, and it does not, either singly or when successive issues are put together constitute a book. Some of the articles are written by Petitioner, Sanford Parker and some of the articles written by a professional journalist. Section 1115(a)(5) of the Tax Law provides that newspapers and periodicals are exempt from the sales tax imposed by Section l105(a) of the Tax Law. Section 528.6(c) of the Sales and Use Tax Regulations defines a periodical as follows: (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; (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.

-2­
TSB-A-94 (12)S
Sales Tax
March 30, 1994
(2) A publication which may be known as or considered to be a newsletter may qualify as a periodical if it conforms to the above standards. Where a newsletter has no signed articles, but has a staff of writers who originally prepare articles, such publication will be considered to have articles by different authors. If a publication has been classified by the United States Postal Service as one which is entitled to second class mailing privileges, that fact will be considered in determining whether or not the publication is a periodical. Based upon a review of the six successive issues submitted by Petitioner, "Sandy Parker Reports" qualifies as a periodical under Section 1115(a)(5) of the Tax Law since it meets the requirements set forth in Section 528.6(c) of the Sales and Use Tax Regulations. However if all of the articles appearing in Sandy Parker Reports were to be authored solely by Petitioner, than the publication would fail to meet the requirement set forth in Section 528.6(c)(1)(v) of the Sales and Use Tax Regulations that the articles be by different authors and thus it would not qualify as a periodical. As such, its sale would not be exempt from sales tax pursuant to Section 1115(a)(5) of the Tax Law.

DATED: March 30, 1994

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

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