Ezel / Tax Rulings / TX
TX 8810L0910G09 Sales and/or Use Tax (State,Local,MTA) 1988-10-18

Were advertising charges in a home-shopping publication taxable, and who paid tax on its production?

Short answer: The advertising charges were not taxable. The publisher paid tax on production materials and supplies and on outside printing charges.

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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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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

The publication did not meet Rule 3.299's definition of a magazine, but the Comptroller still said its advertising charges were not taxable.

The publisher had to pay tax on all materials and supplies used to produce the publication. If another party printed it, the publisher also owed tax on the printing charge.

Common questions

Were advertisers charged sales tax? No.

Did the publication qualify as a magazine? No under the cited definition.

Who paid tax on production? The publisher.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller October 18, 1988

Dear *:

Thank you for your recent letter concerning the taxability of your
publication, "*** HOMES."

The publication does not meet the definition of a magazine found
in section (b)(1) of Rule 3.299. Thus, section (b)(3) of the rule
does not apply to your publication.

The advertising rates you charge to advertisers are not taxable.
You are not required to charge sales tax. However, you are re-
quired to pay tax on all the materials and supplies used to pro-
duce the publication. You also will owe sales tax on the printing
charges if the publication is printed by another party and not by
you.

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

If you have any questions or need more information, you may call
toll-free 1-800-252-5555, ext. 3-4683. The regular number is 512/
463-4600. You may write me at Tax Correspondence, Comptroller of
Public Accounts.

Sincerely,
Eddie C. Washington
Tax Correspondence

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