Tax Type
Retail Sales and Use Tax
Description
Medical magazines
Topic
Exemptions
Date Issued
09-21-1988
September 21, 1988
Re: Request for Ruling/Retail Sales and Use Tax
Dear****************
This will reply to your letter dated August 1, 1988, in which you requested a ruling as to whether your clients, ************* ("The Taxpayers" ) qualify for exemption from the Virginia Retail Sales and Use Tax.
FACTS
The Taxpayers publish a magazine for physical therapists *********** and a magazine for occupational therapists*********. Each magazine is mailed weekly. *********** is published in coordination with the ********** is published in coordination with the American Occupational Therapy Association. Both professional associations allocate a percentage Or their dues to the publications and the publications are mailed to all persons on their mailing lists.
DETERMINATION
Va. Code §58.1-608(13), provides an exemption from the retail sales and use tax for:
-
- 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 or such publications [are not subject to the tax], 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 or such publications [are not subject to the tax], except that newsstand sales of the same are taxable
In the instant case, the Taxpayers are selling the magazines to members or the professional organizations and others. The magazines are issued weekly and are available to the general public. Therefore, I find that these publications qualify for the exemption set forth in Va. Code 58.1-608(13). As such, subscription sales Or the publications are not subject to the sales and use tax; newsstand sales are taxable.
You do not indicate whether the Taxpayer is a printer-publisher of these publications. If so, Va. Code §58.1-608(1)(e), provides an exemption from the tax for machinery and tools, repair parts, supplies, etc., used directly to produce the publication (see copy enclosed). If an outside printer actually produces the publications, the Taxpayer may purchase the printing exempt from the tax under a resale exemption.
The determination of an exemption from the local license tax is made by the local Commissioner or Revenue or Director of Finance for the locality in which the Taxpayer operates its business. Therefore, any ruling on exemption from this local tax should be obtained from the proper local officials.
If you have any further questions, please let us know.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner