Sales Tax State Activity Update - October 2004

Free Publication Containing Advertising Taxable in Florida

A taxpayer requested advice on the taxability of an advertising publication it prints outside of the state, provides for free, and uses the U.S. postal service to deliver it to potential customers.

Advertising space in the publication is solicited from local merchants in a targeted area. It contains names, addresses, and gift certificates. The ruling did not explain what other types of advertising the publication contained. Also, the ruling did not explain how much of each type of advertising was in the publication.

The taxpayer stated in its ruling request it had been paying use tax on the cost of the publications.

The Florida Department of Revenue cited Sections 212.05 (1) (a) the imposition of tax for the privilege of using or consuming tangible personal property in the state. Section 212.06(16) (a) & (b) the basis on which tax is calculated for a publication that is considered consumed for ones own use, which is the printing price. Section 212.08(7) that provides for an exemption for free publications published on a regular basis that contains advertising, and is distributed through the mail.

In the opinion of the Department, the publication failed to be exempt because the address book and gift certification sections are not considered classified as advertising. As a result the provisions of Section 212.08(7) are not met.

This Technical Assistance Advisement is available at: http://taxlaw.state.fl.us/sut_out.asp?r=04A046%0D%0A+%7BVIC+%3A2wa+%23%5B%7D&file=sut_taa1.ask

(Technical Assistance Advisement, No. 04A-046, August 6, 2004, Florida Department Of Revenue)

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