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Sales Tax State Activity Update - December 2007

Extra Extra! Florida Gives Extra Boon to Newspaper Inserts

In a Technical Assistance Advisement (TAA) it was ruled that newspaper inserts that met the requirements of Section 212.08(7) (w), F.S. and Rule 12A-1.008(4), F.A.C., were exempt from sales and use tax. The requirements that were met in this matter were 1) the inserts are printed by the publisher as part of the newspaper, or were delivered directly to the publisher by any other printer for inclusion in a distributed newspaper, and (2) they were labeled as part of the designated newspaper to which they were inserted.

Facts

1. Each week, the taxpayer designs a newspaper advertising insert for its client.
2. That insert design is then printed by a third party printer.
3. Those inserts are then delivered by the printer to the newspaper for insertion.
4. Printed on the inserts is "Advertising Supplement for the Newspaper".
5. The Taxpayer is then invoiced for the printing and delivery to the newspaper.
6. The taxpayer then invoices his client for the design, printing, and delivery of those inserts.
   
   

Analysis

The inserts provided by the taxpayer were delivered directly to the publisher for inclusion in a distributed newspaper, and the inserts are labeled as an advertising supplement to the designated newspaper to which they are inserted. The purchaser of the inserts (client) does acquire the inserts from a dealer (taxpayer) other than the publisher of the newspaper, as provided in Rule 12A-1.008(4), F.A.C. For future sales identical to the one described, the sale of the inserts will not be subject to sales tax provided the criteria set forth in Section 212.08(7)(w), F.S., and Rule 12A-1.008(4), F.A.C. are met, and your client provides you with the required Annual Resale Certificate or an Exemption Certificate.

The full TAA can be viewed on the Florida Department of Revenue Website.

(Florida Department of Revenue, Technical Assistance Advisement, No. 07A-031, 10/05/07)

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