Did the taxpayer's publication qualify as a magazine, and what objective criteria did Texas use to distinguish a magazine from a newsletter?

Plain-English summary

The publication had previously been treated as a newsletter, but the Comptroller concluded that it qualified as a magazine. Texas considered four objective questions: whether the publication had paid subscribers, included stories or articles by multiple writers, held a second-class postal permit as a magazine, and followed a regular publication schedule.

The taxpayer's publication met the test because it had paid subscribers, arrived monthly, contained articles by various writers, and was mailed under a second-class postal permit. The letter also said advertising appeared in the statute but was not used as the final classification test.

What this means for you

The Comptroller looked beyond the publication's appearance or informal label. Regular paid circulation, multiple contributors, postal classification, and publication frequency supplied the objective basis for the result.

Common questions

Did this publication qualify as a magazine? Yes. Was advertising the deciding factor? No. What facts supported magazine status? Paid monthly subscribers, articles by various writers, and a second-class postal permit.

Citations and references

• The letter refers to a statute but does not identify its number.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9110186L

Original ruling text

October 25, 1991

Dear Mr. **:

First, let me apologize for not answering your letter sooner. I have been out
of town on business during a substantial part of the month. I have concluded
your publication is a magazine.

Essentially, your publication was considered a newsletter rather than a
magazine. While just looking at it, I am inclined to agree with that
conclusion. However, we do have objective criteria that can be applied to this.
(While advertising is listed in the statute, we have not applied this as the
final test of whether a publication is a magazine.) We have looked at the
following to determine if a publication is a magazine:

1. Does it have a list of paid subscribers?

2. Does it contain stories, articles, essays, etc. by various writers?

3. Is it classified as a magazine by the U.S. postal authorities (second class
   postal permit)?

4. Does it have a regular publication schedule?

Based on the information contained in your letter of September 3, 1991, I find
your publication qualifies as a magazine. According to your letter, your
publication has a list of paid subscribers who receive the publication on a
monthly basis. The publication contains articles by various writers and is
mailed under a second class postal permit.

I hope this satisfactorily answers your inquiry. Again, my apologies for my
tardy response.

Sincerely,

Wade Anderson
Assistant Director for Tax Administration