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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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N


385.0000 Newspapers and Periodicals—Regulation 1590

Annotation 385.1065

(d) Business Reports, House Organs, Newsletters


385.1065 Free Employee Newsletter. An out-of-state firm contracts with a California customer to produce a quarterly employee newsletter which is distributed free of charge to the customer's employees. These newsletters are published and distributed at least quarterly and contain no advertising nor product publicity. The firm contracts with various vendors including writers, photographers, graphic designers, typesetters and printers to produce the newsletter. The firm does not take delivery of, nor does the printer transfer title to, any negative, flat, or any other materials consumed in the process. The newsletters are purchased from the California printer solely for sale to the California customer. The firm may issue a resale certificate to the printer to purchase the newsletter ex-tax. 8/23/93.