Effective July 1, 2004, a subscription for magazines and newspapers, including publications containing only puzzles, will be exempt from sales tax.
New Jersey extends and reduces fee.
New Jersey imposes an Outdoor Advertising Fee on the gross amounts collected by a seller for space on a billboard or other outdoor advertising signage. The fee will remain at 6% until July 1, 2006, when the fee is reduced…
New Jersey revised outdoor advertising fee.
Gross amounts collected by retail sellers of billboard advertising space are subject to a 6% Outdoor Advertising Fee as of July 1, 2004. Taxpayers should report and remit the Fee quarterly on Form OA-100 and may also include exemptions from…
Texas taxes out-of-state printing of ad materials.
The printing of out-of-state advertising materials are subject to Texas use tax. In a recent court case, materials used for advertising a Texas department store were printed outside of the state, but mailed to prospective customers in Texas. The department…
North Dakota issues guidelines on repair services.
The Tax Commissioner has clarified that repair services are not taxable but that tangible personal property transferred in connection with repair services is subject to sales or use tax. Service providers must separately state the repair charges on bills and…
Sale of computerized system for distribution of customized coupons and advertisements exempt in Michigan.
In the case of Catalina Marketing Sales Corp. v. Department of Treasury the “incidental to service test” was used to determine that, though tangible personal property, in the form of hardware and software installed by the taxpayer, was exchanged, the…
Inter-bank coin and currency services now exempt in Connecticut.
Coin and currency services provided by one financial services company for another financial services company are exempt from sales and use taxes.
Pre-stamped stuffed envelopes subject to use tax in North Carolina.
An independent franchisee purchased envelopes containing advertising coupons and fliers, which were assembled in another state, from its franchisor. The franchisee distributed the envelopes to customers it had solicited in North Carolina. Using the true object test, the Department determined…
North Carolina use tax applicable for advertising coupons mailed into the state
An independent franchisee that publishes, prints, and assembles envelopes with advertising coupons and then mails them into North Carolina to potential customers was found liable for use tax on tangible personal property. The taxpayer argues that only non-taxable advertising services…
Texas exempts sales calls as advertising services.
A Texas company used a toll-free national telephone number for advertising purposes when selling its customers’ motor vehicle parts. The solicitations were not taxable as data processing services, but remained exempt as advertising services. The state argued that the company…
Indiana sale of basketball calendars taxable.
In Mid America Publishing, Inc v. Indiana Department of Revenue the court decided that sales of custom printed calendars bearing the logo of the publishing company and an image of Indiana University\’s Men\’s basketball team were subject to sales tax.
New York public relations company not subject to tax on sale of services.
A public relations company that provides broadcast communications services to its customer through the use of television, radio and the Internet is not required to collect tax on charges to its customers for providing the media coverage. The public relations…
Texas Motor Vehicle Parking and Storage Services Taxable.
In Texas, charges to store empty boat trailers, golf trailers, and motorcycle trailers, as well as mobile barbeque pits, are subject to sales tax as the provision of motor vehicle parking and storage. However, a charge to store an actual…
Maine Service Provider Tax Effective July 1, 2004.
New legislation in Maine will change the taxation of certain services from sales tax to a Service Provider Tax. Those services include: Extended cable television services, fabrication services, videotape and machine rental services, rent-to-own services for furniture and audio equipment,…
Kentucky issues rules on purchases by advertising agencies.
A new Kentucky regulation clarifies that charges by an advertising agency to provide its customer with advertising services is exempt from tax but the sale of tangible personal property is taxable.
Florida magazine composed primarily of advertising material and distributed for free exempt from sales and use tax on cost of production.
A publication in Florida which consisted of fifty-nine percent advertising was exempt from tax on the cost of publishing and printing…
Texas taxes office paper removal services.
A taxpayer who paid a service provider to remove paper from the premises of its office environment for purposes of recycling claimed that the purchase of recycling services was not taxable and filed for a refund of the sales tax…
Florida addresses taxable cleaning services.
The Florida Department of Revenue has determined that the following services and combinations thereof are exempt for both residential and non-residential customers…
Virginia extension on exemption.
The exemption for certain tangible personal property and services used in the production of audiovisual work has been extended from July 1, 2004 to July 1, 2009. (Ch. 101 (H.B. 1262), Laws 2004, effective July 1, 2004.)
West Virginia website advertising.
Website banner advertising was not exempt from tax under West Virginia Code Section 11-15-9(a)(12) which exempts outdoor advertising, the sale of radio and television time, and the preprinting of advertising circulars but does not include advertising on the Web. (West…
Wisconsin publications shipped out of state.
In Wisconsin charges for advertising publications were subject to tax since they were shipped out-of-state by an entity different than the purchaser. These publications did not qualify for the exemption granted to purchasers of materials that are purchased and stored…
New York public relations services.
In New York, a company may provide public relations services exempt from tax if the company is not involved in selling or producing tangible personal property. The service of providing visual or audio news stories and press releases to the…
North Carolina taxes delivery charges.
According to statute, as recodified and rewritten effective January 1, 2004, the definition of sales price includes delivery charges. Even if separately stated, delivery charges are subject to sales tax. However, separately stated charges for installation services are excluded from…
Florida exempts qualifying newspaper delivery charges.
The Florida Department of Revenue advises that charges for newspaper delivery services performed by independent carriers are not subject to Florida sales and use tax if the following conditions are met.