Ezel / Tax Rulings / TX
TX 8802L0893G06 Sales and/or Use Tax (State,Local,MTA) 1988-02-23

Could a free weekly advertising shopping guide buy newsprint, ink, and outside printing without Texas sales tax?

Short answer: Yes, if the guide was printed on newsprint and therefore qualified as a newspaper. It could issue an exemption certificate for newsprint, ink, and outside printing. If it was not printed on newsprint, those inputs were taxable.

Apply this to your situation

This page answers the general question as of 1988. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1988
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is a taxpayer-specific February 1988 Texas Comptroller letter applying Rule 3.299. It says the opinion may change if the facts differ. STAR's caption contrasts newspapers with newsletters or circulars, but the operative body states a newsprint-based test for this shopping guide; this page does not add other publication tests. Newspaper, advertising-publication, printing-input, and exemption-certificate rules may have changed; verify current law. STAR documents may no longer represent current policy even when not marked superseded. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page) is the authoritative source for any reliance.

Plain-English summary

The shopping guide was printed weekly, distributed free, and supported by advertising revenue. It qualified as a newspaper if printed on newsprint.

When printed on newsprint, the publisher could buy the newsprint, ink, and outside printing tax-free by giving the supplier an exemption certificate. If the guide was not printed on newsprint, the publisher had to pay tax on all materials and outside printing.

What this means for you

The historical result depended on the physical medium, not whether readers paid for the guide. The letter did not provide a broader test for newsletters or circulars.

Common questions

Did free distribution prevent newspaper treatment? No.

What condition controlled? The guide had to be printed on newsprint.

What could be bought tax-free? Newsprint, ink, and outside printing, with an exemption certificate.

Citations and references

  • 34 Tex. Admin. Code Rule 3.299 — historical newspaper rule.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

February 23, 1988

Dear ***:

Thank you for your letter concerning taxability printing materials for
the
***.

You stated that the shopping guide is printed weekly and is distributed
for
no charge. Revenue is generated from advertising.

The publication would qualify as a newspaper if it is printed on
newsprint.
The newsprint, ink and outside printing could be purchased tax-free by
issuing an exemption certificate to the supplier.

If the shopping is not printed on newsprint, tax must be paid on all
materials and outside printing.

I am enclosing Rule 3.299 for your information.

That opinion is based on the facts presented. If there are additional or
different facts, the opinion may change.

If you have any questions or need more information, please call our
toll-free
number 1-800-531-5441. The regular number is 512/463-4600. You may
write me
at the Tax Policy Division.

Sincerely,
(Mrs.) Jo Ann Dieck
Tax Policy Division

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