Ezel / Tax Rulings / TX
TX 8806L0892D11 Sales and/or Use Tax (State,Local,MTA) 1988-06-27

Were newspaper advertising inserts shipped into Texas subject to sales or use tax?

Short answer: It depended on the shipment. Texas said inserts shipped into the state by the advertiser were taxable regardless of transportation method, without requiring constructive possession. But inserts sent directly from an out-of-state or Texas printer to the person distributing the newspapers were not subject to sales or use tax.

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 an official Texas Comptroller of Public Accounts letter published on the State Tax Automated Research (STAR) system. Letters on STAR can be the basis of a detrimental reliance claim only for the taxpayer to whom the letter was directly issued (see 34 Tex. Admin. Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice. Consult a licensed Texas tax professional about your specific situation.
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

Texas distinguished two delivery paths for newspaper advertising inserts.

Inserts shipped into Texas by the advertiser from out of state were taxable regardless of the transportation method. The letter said constructive possession was no longer necessary to impose tax on that transaction.

By contrast, inserts shipped directly from an out-of-state or Texas printer to the person responsible for distributing the newspapers were not subject to sales or use tax.

What this means for you

Advertisers buying newspaper inserts

The shipment chain mattered more than the carrier used. Routing inserts through the advertiser produced a taxable result in the letter, while printer-to-newspaper-distributor delivery produced a nontaxable result.

Printers and newspaper distributors

Document direct shipment from the printer to the person responsible for newspaper distribution. That was the fact supporting the nontaxable treatment stated here.

Common questions

Q: Does transportation method change the result?
A: No. The letter says advertiser-shipped inserts were taxable regardless of transportation method.

Q: Must the advertiser take constructive possession before tax applies?
A: No. The letter says constructive possession was no longer required.

Q: What direct shipment was nontaxable?
A: Shipment from either an out-of-state or Texas printer directly to the person distributing the newspapers.

Q: Can I rely on this 1988 letter today?
A: Treat it as historical guidance. It was based on the stated shipping facts and may not reflect current policy.

Citations and references

The letter gives the shipment-based treatment but does not cite a specific Tax Code section or Comptroller rule by number.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

June 27, 1988

Dear ***:

Thank you for your inquiry concerning the taxability of newspaper
inserts.

Newspaper inserts shipped into Texas by CORP ABC from out-of-state
would be subject to sales tax regardless of the mode of transporta-
tion. Constructive possession of the inserts is no longer required
to impose tax on this type of transaction. If inserts are shipped
directly from an out-of-state or Texas printer to the person respon-
sible for the distribution of the newspapers, the inserts would not
be subject to sales or use taxes.

This opinion is based on the facts presented. If there are addition-
al or different facts, the opinion may change.

If you have any questions, please contact Tax Correspondence. You
may call toll free 1-800-531-5441, or our regular number is
512/463-4600.

Sincerely,
Bob Jeffcoat
Tax Correspondence

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