Ezel / Tax Rulings / TX
TX 9110L1135A12 Sales and/or Use Tax (State,Local,MTA) 1991-10-02

Was the subscription price exempt when the publications qualified as magazines but were mailed at Library Rate rather than entered as second-class mail?

Short answer: No. The publications qualified as magazines, but their subscription price was taxable because they used Library Rate fourth-class postage. The exemption required a semiannual-or-longer subscription and entry as second-class mail.

Apply this to your situation

This page answers the general question as of 1991. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1991
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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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 submitted publications qualified as magazines under Texas Tax Code § 151.320. Their subscription price was still taxable because the publisher mailed them at Library Rate, classified as fourth-class postage.

The letter said the subscription exemption applied to magazines sold for a semiannual or longer period and entered as second-class mail. Rule 3.299 supplied the referenced magazine rules.

What this means for you

Magazine status alone did not establish the subscription exemption. The subscription period and postal entry requirements also had to be satisfied.

Common questions

Were the publications magazines? Yes. Was the subscription exempt? No. Why not? They used Library Rate rather than second-class mail. What duration did the exemption require? A semiannual or longer subscription.

Citations and references

  • Texas Tax Code § 151.320 (magazines and subscriptions)
  • Rule 3.299 (magazine rules)

Source

Original ruling text

October 2, 1991

Dear **:

I have examined the publications you submitted and am of the
opinion that they qualify as magazines under Tax Code Section
151.320, but that their subscription price is subject to tax.
The reason is that the magazines are mailed Library Rate (4th
class postage).

Subscriptions to magazines that are sold for a semiannual or
longer period and are entered as second class mail are exempted
from the sales and use taxes. I am enclosing a copy of
Rule 3.299 for your reference.

This opinion is based on the facts you presented. Other facts,
though similar, may yield different results.

If you have questions or need more information, please call or
write. You may reach me by calling toll free (800) 531-5441.
My direct line number is (512) 463-4680. The number for FAX
transmissions is (512) 475-0900. You may write to me in care
of Tax Administration Division.

Sincerely,

Al Van Allen
Tax Administration Division

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