Tax Type
Retail Sales and Use Tax
Description
Publications; Exemption criteria
Topic
Exemptions
Property Subject to Tax
Date Issued
08-29-1990
August 29, 1990
Re: Request for Ruling: Sales and Use Tax
Dear ****
This will reply to your letter of July 30, 1990 in which you request a ruling on the applicability of the sales and use tax to publications issued by ***** (the "Taxpayer").
FACTS
The Taxpayer has incurred expenses relating to various publications which it publishes. The Taxpayer maintains that the publications are published at least four times per year and are distributed at no cost to the readers. The Taxpayer requests a ruling whether the charges for the equipment, printing and supplies used to produce these publications are exempt from sales and use tax under Va. Code §58.1-608(3)(b)(v) [previously Va. Code §58.1-608(1)(e)].
RULING
Va. Code §58.1-608(3)(b)(v) does provide an exemption from the sales and use tax for equipment, printing and supplies used to produce a publication, as described in Va. Code §58.1-608(6)(c), that is distributed free of charge. In order to qualify for this exemption, a publication must be issued daily or at average intervals not exceeding three months and must be a compilation of information available to the general public (see enclosed copy of Virginia Regulation 630-10-73).
Thus, if the Taxpayer's publications are issued an average of four times per year and are available to the general public, the printing costs would be exempt from the sales and use tax as provided in Va. Code §58.1-608(3)(b)(v).
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner