Is a weekly ad-heavy shopping publication a tax-exempt newspaper or periodical, so its sales aren't subject to sales tax?

Plain-English summary

B-L Press, Inc. (doing business as Buy-Lines Press, Baldwin, New York) publishes "Buy-Lines Press," sold weekly through newsstands in the New York metro area (no subscriptions or mail copies). It's largely advertising — both private ads by individuals selling their own items and commercial ads — plus amusement features and general-interest articles (automobiles, motorcycles, sports, homemaking, shopping, do-it-yourself) that are substantial in length and number. It asked whether the publication is an exempt newspaper or periodical under § 1115(a)(5).

The answer: not a newspaper, but yes — a tax-exempt periodical.

• § 1105(a) taxes receipts from retail sales of tangible personal property; § 1115(a)(5) exempts newspapers and periodicals.
• Newspaper (20 NYCRR 528.6(b)): must contain matters of general interest and reports of current events. Buy-Lines Press is not a newspaper because it carries no reports of current events.
• Periodical (20 NYCRR 528.6(c)): must be published at stated intervals at least four times a year, not be a book, be available to the public, have continuity of title and content, and contain a variety of articles by different authors. The Department found Buy-Lines Press has all these characteristics.
• So it's an exempt periodical, and receipts from its sale are not subject to sales tax under § 1105(a).

What this means for you

A "shopper" can be an exempt periodical even if it's mostly ads. The heavy advertising content didn't disqualify Buy-Lines Press. What mattered was that it met the structural periodical test — frequency, not-a-book, public availability, continuity, and varied authored articles.

Newspaper vs. periodical is a real distinction. To be a newspaper you need reports of current events; to be a periodical you don't. Many ad-driven weeklies fail the newspaper test but still qualify as periodicals — either way, the sale is exempt under § 1115(a)(5).

Genuine articles help. The publication carried substantial general-interest articles by different authors, which supported the "variety of articles" requirement. A bare listing with no real articles is a harder case (see the contrasting result for a listings-only bulletin in TSB-H-80(172)S).

Common questions

Q: My publication is mostly advertising — can it still be exempt?
A: Yes, if it meets the periodical test in 20 NYCRR 528.6(c). Buy-Lines Press was largely ads but qualified because it also had varied, substantial articles and met the frequency, not-a-book, public-availability, and continuity requirements.

Q: Why isn't it a newspaper?
A: A newspaper must contain reports of current events (20 NYCRR 528.6(b)). Buy-Lines Press didn't, so it failed the newspaper test — but it still qualified as a periodical.

Q: Does it matter that it's sold only on newsstands, not by subscription?
A: No. The exemption turns on the periodical characteristics, not on how it's distributed. Being available to the public through newsstands satisfied the public-availability requirement.

Citations and references

Statutes, regulations and authority:

• Tax Law § 1105(a) — imposes sales tax on receipts from retail sales of tangible personal property
• Tax Law § 1115(a)(5) — exempts receipts from the retail sale of newspapers and periodicals
• 20 NYCRR 528.6(b) — defines "newspaper" (includes matters of general interest and reports of current events)
• 20 NYCRR 528.6(c) — five-part test for a "periodical" (published at least four times a year; not a book; available to the public; continuity of title/content; variety of articles by different authors)

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao_1980.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/h80_174s.pdf

Original ruling text

New York State Department of Taxation and Finance

Taxpayer Services Division
Technical Services Bureau

TSB-H-80(174)S
Sales Tax
September 10, 1980

STATE OF NEW YORK
STATE TAX COMMISSION
ADVISORY OPINION

PETITION NO. S800610A

On June 9, 1980, a Petition for Advisory Opinion was received from B-L
Press, Inc. (D/B/A Buy-Lines Press), 2465 Grand Avenue, Baldwin, New York 11510.
The issue raised is whether Petitioner's publication, entitled "Buy-Lines
press," constitutes a newspaper or periodical so as to come within the exemption
from the New York State sales tax provided for in section 1115(a)(5) of the Tax
Law.
Petitioner's publication is published weekly and circulated and sold
through newstands and other related outlets in the New York Metropolitan area.
No subscriptions are taken and no copies are sold by mail. "Buy-Lines Press"
consists largely of advertising, including both advertisements placed by
individuals who are advertising for the sale of their own personal items and
commercial advertisements. The publication also contains amusement features and
articles of general interest relating to automobiles, motorcycles, sports,
homemaking, shopping and do-it-yourself activities. These articles are of
substantial length and are substantial in number.
Section 1l05(a)(1) of the Tax Law imposes a tax on the receipts from retail
sales of tangible personal property. Section 1115(a)(5) of the Tax Law provides
for an exemption from such tax with respect to "newspapers and periodicals."
Section 528.6(b) of the Sales and Use Tax Regulations defines the term
"newspaper," in relevant part, as follows: "In order to constitute a newspaper,
a publication must conform generally to the following requirements: (i) it must
be published in printed or written form at stated short intervals, usually daily
or weekly; (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; and (iv) it must contain matters of general interest and reports of
current events." 20 NYCRR528.6(b)
Section 528.6(c) of the Sales and Use Tax Regulations defines the term
"periodical," in relevant part, as follows: "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; (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." 20 NYCRR528.6(c)
Petitioner's publication does not constitute a "newspaper," within the
meaning of section 528.6(b) of the Sales and Use Tax Regulations, because it does
not contain reports of current events. However, Petitioner's publication does
possess all of the requisite characteristics necessary for it to constitute a
"periodical" within the meaning of section 528.6(c) of the Sales and Use Tax
Regulations.

JAMES H. TULLY, JR., COMMISSIONER
LOUIS M. JACOBSON, DEPUTY COMMISSIONER
FRANK J. PUCCIA, DIRECTOR

2
TSB-H-80(174)S
Sales Tax
September 10, 1980

Accordingly, receipts from the sale of "Buy-Lines Press" are not subject
to the sales tax imposed under section 1105(a)( 1) of the Tax Law.
Dated: August 19, 1980

s/ LOUIS ETLINGER
Deputy Director
Technical Services Bureau