Tax Type
Retail Sales and Use Tax
Description
Quarterly magazine; Subscription charges
Topic
Exemptions
Taxability of Persons and Transactions
Date Issued
11-30-1987
November 30, 1987
Re: Ruling Request/Retail Sales and Use Tax
Dear ****************
This is in reply to your letter of June 5, 1987 in which you request a ruling regarding the applicability of the Virginia Retail Sales and Use Tax to the printing and to the sale of ************* the quarterly magazine published by **********************
FACTS
*************** (Association) is a Virginia nonprofit, nonstock corporation exempt from income taxation under §501 (c)(4) of the Internal Revenue Code. Association publishes a quarterly magazine as part of its tax exempt educational activities. The magazine is available to the general public by subscription and membership in the Association also includes a subscription. Association performs the editorial functions and the printing is done by contract. There are no newsstand sales of the magazine.
Specifically, you request that the department rule that (1) no tax is due on the printing costs of the magazine, and that (2) the tax is not applicable to the distribution of the magazine by subscription on a quarterly basis.
RULING
Based upon the exemptions from the Retail Sales and Use Tax provided under Virginia Code §58.1-608 et al, both the printing and the sale of the magazine published by the Association are exempt from the tax. Since there are no newsstand sales of the magazine, the exemption under Virginia Code §58.1-608.13 is applicable to the distribution of the magazine. This section provides:
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- Any publication issued daily, or regularly at average intervals not exceeding three months, and advertising supplements and any other printed matter ultimately distributed with or as part of such publications, except that newsstand sales of the same are taxable.
- Any publication issued daily, or regularly at average intervals not exceeding three months, and advertising supplements and any other printed matter ultimately distributed with or as part of such publications, except that newsstand sales of the same are taxable.
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- (e) equipment, printing or supplies used directly to produce a publication described in subdivision 13 whether it is ultimately sold at retail or for resale or distribution at no cost.
- (e) equipment, printing or supplies used directly to produce a publication described in subdivision 13 whether it is ultimately sold at retail or for resale or distribution at no cost.
If you have any further questions, please do not hesitate to contact me.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner