| WAC 143 |
Publishers of newspapers, magazines,
periodicals. |
| SOURCE |
DOCUMENT |
DETER. NO |
DATE OF ISSUE |
DESCRIPTION |
| WAC: |
458-20-143 |
|
08/30/10 |
The Department is amending WAC 458-20-143 to reflect several recent legislative changes:
2ESSB 6143 (chapter 23 Laws of 2010) provides that advertising revenues earned by publishers of newspapers, periodicals, and magazines are to be apportioned to this state for tax purposes.
EHB 2122 (chapter 461, Laws of 2009) provides a preferential B&O tax rate for newspaper publishers. This legislation also requires such newspaper publishers to file tax returns electronically and filing annual reports;
ESHB 2075 (chapter 535, Laws of 2009) explains the application of the retail sales tax and use tax on the sale of magazines and periodicals that are transferred to the buyer electronically;
SB 6173 (chapter 563, Laws of 2009) changes the use of a resale certificate to a resellers permit to document a wholesale sale;
SHB 2585 (chapter 273 Laws of 2008) provides amended definitions of “newspaper” and “supplement;” and
The Department is also incorporating:
The statutory definition of “periodical or magazine” provided in RCW 82.04.280 ; and
The sales tax and use tax exemptions for computer equipment used in printing or publishing of printed material provided by RCW 82.08.806 and 82.12.806.
|
| |
458-20-143 |
|
08/01/1983 |
Publishers of
newspapers, magazines, periodicals. |
| RCW: | 82.04.214 |
|
7/1/93 |
Newspaper |
| |
82.04.280 |
|
1993 |
Tax on printers, publishers,
highway contractors, Extracting or processing for hire, cold storage
warehouse or storage warehouse operation, insurance general agents, radio and
television broadcasting, consumer as defined in RCW 82.04.190(6)--Cold
storage warehouse defined--Storage warehouse defined--Periodical or magazine
defined. |
| |
82.08.020 |
|
1992 |
Tax imposed--Retail
sales--Retail car rental. |
| |
82.08.806 |
|
2004 |
Sale of computer equipment parts
and services to printer or publisher. |
| |
82.14.030 |
|
1989 |
Sales and use taxes
authorized--Additional taxes authorized--Maximum rates. |
| ETA: |
3074.2009 |
|
2/2/09 |
Newspaper supplements |
| |
456.08.143 |
|
3/1/84 |
TAXABILITY OF PRINT SHOPS PLATE PRODUCTION AND PRINTING CHARGES Revised 2/2/09 See ETA 3074.2009 |
| |
89-005 |
|
10/24/89 |
A Statement of Purpose and Intent With Respect to the Taxability of Newspapers and Definition of a "Newspaper". Cancelled effective December 22, 2005. ETA is being cancelled because the interim definition conflicts with and is superseded by statutory language ultimately enacted into law (RCW 82.04.214). |
| INDUSTRY GUIDES: |
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| SPECIAL
NOTICES: |
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| Subject
Title Reference: |
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| Newspapers |
|
|
06/08/2012 |
Printers and Publishers of Newspapers: B&O Tax Changes and Definitions |
| Printing & Publishing |
|
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06/08/2012 |
Printers and Publishers of Newspapers: B&O Tax Changes and Definitions |
| Newspapers |
|
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08/30/2011 |
B&O Tax Rate Lowered Printing and/or Publishing of Newspapers |
| Printing & Publishing |
|
|
08/30/2011 |
B&O Tax Rate Lowered Printing and/or Publishing of Newspapers |
| Economic Nexus |
|
|
05/28/2010 |
New "Economic Nexus" in Washington State May Impact "Foreign Corporations" |
| Economic Nexus |
|
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05/28/2010 |
New Apportionment Method |
| Economic Nexus |
|
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05/28/2010 |
Tax Attorneys and CPAs New "Economic Nexus" in Washington State May Impact Your Clients |
| Economic Nexus |
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05/28/2010 |
Registered Out-of-state Businesses Currently not Reporting Income from Service Activities - New Apportionment for Certain Income |
| Economic Nexus |
|
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09/10/2010 |
B&O Tax Reporting Requirement Continues After Business Activity Stops (Trailing Nexus) |
| Newspapers |
|
|
6/19/09 |
B&O Tax Rate Lowered Printing and/or Publishing of Newspapers |
| Printing & Publishing |
|
|
6/19/09 |
B&O Tax Rate Lowered Printing and/or Publishing of Newspapers |
| Computers
Used in Printing & Publishing/ Printing & Publishing |
|
|
04/16/2004 |
Computers Used in Printing &
Publishing-Sales & Use Tax Exemption |
| Newspapers |
|
|
06/09/2008 |
Advertising Income from
Electronic Version of Printed Newspaper Now Taxed under Printing and
Publishing Classification |
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| DIRECTIVE: |
8143.1 |
|
12/03/1987 |
Intermediate Steps in a Printing
ProcessCancelled
07/17/02Intermediate Steps in a
Printing Process--Publishers - This directive
notes that ETB (now ETA) 417.12.144 (Printing industry - Use tax on
consumable materials and supplies) and 456.08.143 (Taxability of print shops
- Plate production and printing charges) provide tax-reporting information
for printers regarding products manufactured and used during intermediate
steps in a printing process.The
directive notes that the Department was in 1987 reviewing the appropriateness
of expanding this tax treatment to publishers who may not perform any
printing activity. This issue was settled some time ago and the directive is
no longer needed.Publishers are
entitled to the same treatment as printers with respect to products purchased
for use in a printing process.ETA 456
provides in part that a "publisher, printers, and trade shops which purchase
or produce such items are liable for use tax thereon measured by the value of
the materials.This is because these
materials do not become a component part of the printed article sold and are
put to an intervening use by the printer." |
| RPM: |
89-5 |
|
|
A STATEMENT OF PURPOSE AND
INTENT WITH RESPECT TO THE TAXABILITY OF NEWSPAPERS AND DEFINITION OF A
"NEWSPAPER" |
| WTD: |
1 WTD 161 |
86-249 |
|
RETAIL SALES TAX; EXEMPTIONS;
TRADE JOURNALS' AIRLINES GUIDES; NEWSPAPERS. Airlines guides and other
publications devoted to a specialized field are not exempt from the retail
sales tax under RCW 82.08.0253, the statutory exemption for newspapers. |
| |
4 WTD 273 |
87-347 |
|
B&O TAX -- NEWSPAPER
ADVERTISING -- MAIL DISTRIBUTION OF. Distribution of direct mail advertising
wrapped in qualified community newspaper does not qualify for the Printing
and Publishing B&O classification. |
| |
4 WTD 437 |
88-10 |
|
B&O
TAX -- PRINTING AND PUBLISHING -- ADVERTISING CIRCULARS. Persons who both
print and publish circulars are taxable under the Printing and Publishing
classification. Where taxpayer publishes (distributes) advertising circulars
but does not print them, it does not qualify for thelower tax rate of Printing/Publishing
B&O. |
| |
5 WTD 307 |
88-180 |
|
B&O
TAX -- MANUFACTURING -- PUBLISHING -PACKAGING - DISTINGUISHED. A publisher
and seller of educational materials does not become a manufacturer simply by
packaging some items together as part of a series. To constitute
manufacturing, the combining of the items must produce a new, different, or
useful substance or article of tangible personal property. |
| |
5 WTD 319 |
88-186 |
|
B&O TAX -- PRINTING AND
PUBLISHING -- IN-HOUSE PRINTING -- INSURANCE COMPANY. An insurance company
that prints and publishes items for its own use is subject to B&O tax on
the costs for materials, labor , and overhead.THIS DETERMINATION HAS
BEEN OVERRULED OR MODIFIED IN WHOLE OR PART BY DET.NO. 93-269ER, 14 WTD 153
(1995).
|
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6 WTD 197 |
88-269 |
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RETAIL SALES
TAX-EXEMPTION--NEWSPAPERS--U.S. CONSTITUTION--FIRST AMENDMENT--FREE SPEECH--ARKANSAS WRITERS' PROJECT. A
publication must meet the definition contained in Rule 143 in order toqualify for the retail sales tax exemption
granted to newspapers.The Rule is
binding on the Department of Revenue, and the above U.S. Supreme Court case
discussing taxation of the press and the First Amendment did not address the
differential treatment of newspapers versus other publications. |
| |
6 WTD 227 |
88-287 |
|
B&O TAX -- CLASSIFICATION --
PRINTING & PUBLISHING -- PUBLISHERS OF MAGAZINES. Where a significant
part of publishing a magazine occurs within the state, the B&O tax shall
be levied upon the classification of publishing. |
| |
7 WTD 188-1 |
89-97 |
|
PRINTING
& PUBLISHING -- B&O TAX -- NEWSPAPER, MAGAZINE OR PERIODICAL --
DEFINITION. A real estate guide found not to be a newspaper, magazine, or
periodical and therefore advertising income is taxable under the Service and
Other Activities tax classification. |
| |
7 WTD 188-1 |
89-97 |
|
B&O & SALES
TAX--DEFINITION BASED ON CONTENT--NEWSPAPER, MAGAZINE,
PERIODICAL--CONSTITUTIONALITY--ADMINISTRATIVE POWER. The Department of
Revenue is without power to declare a statute unconstitutional. |
| |
7 WTD 242-1 |
89-127 |
|
B&O TAX -- PRINTING &
PUBLISHING - PERIODICALS -DEFINITION. A periodical, as the term is used in
RCW 82.04.280,is a vehicle for the
expression of ideas, thoughts, or news, and not merely the compiling of advertisements.A "[rental] guide" is not a
periodical, and therefore advertising income to its publisher is taxable
under the service category of the B&O tax. |
| |
7 WTD 401 |
89-5 |
|
A STATEMENT OF PURPOSE AND
INTENT WITH RESPECT TO THE TAXABILITY OF NEWSPAPERS AND DEFINITION OF A
"NEWSPAPER" |
| |
8 WTD 203 |
89-97A |
|
B&O TAX -- PRINTING AND
PUBLISHING -- PERIODICAL -- DEFINITION. A periodical is a vehicle for the
expression of ideas, thoughts, or news, and not merely the compiling of
advertisements. |
| |
8 WTD 203 |
89-97A |
|
SALES OR USE TAX -- PRINTING
CHARGES --NEWSPAPER -- DEFINITION. A publication which consists entirely of
advertising and commercial speech is not a newspaper within the meaning of
Rule 143 orRCW 82.08.0253. |
| |
11 WTD 453 |
91-264 |
|
ADVERTISING CIRCULARS --
NEWSPAPER INSERTS.Advertising
circulars inserted in newspapers are part of the newspaper, exempt from tax. |
| |
13 WTD 183 |
93-261 |
|
PHOTOGRAPHIC SERVICES -- SALES
TO PRINTERS AND PUBLISHERS -- WHOLESALING B&O TAX.Until modified or withdrawn, Excise Tax
Bulletins issued by the Department of Revenue allow a photographer who sells
prints with reproduction rights to printers and publishers of magazines,
newspapers, and periodicals to take a resale certificate and to charge no
retail sales tax.If the photographer
takes resale certificates, he or she should photographer takes resale
certificates, he or she should report the income from the sale under the
Wholesaling B&O tax classification. |
| |
20 WTD 266 |
99-118 |
|
B&O TAX -- PUBLISHING --
PERIODICAL -- SUPPLEMENT.Whether
regional directories are supplements or special editions of a single
publication, or separate publications issued annually depends upon whether
all issues are intended to be distributed to the same readers at least once
every three months. |
| |
24 WTD 102 |
01-124 |
|
PRINTING AND PUBLISHING -
REQUIREMENT TO PUBLISH.A prerequisite
for applying Rule 143 to a taxpayer's activities is the publication of
printed material.Publish means to
distribute to the public.Thus, if a
taxpayer does not publish printed material, Rule 143 does not apply to the
taxpayer's activities. |
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26 WTD 91 |
05-0217E |
|
RCW 82.04.280:B&O TAX - PRINTING AND PUBLISHING -
ADVERTISING MATERIALS AND COUPONS.An
assortment of separately printed advertisements and coupons printed on
separate pieces of paper and inserted into an envelope cannot properly be
described as a work or issue, and is therefore not a "publication."Because the collection of separate pieces
of paper is not a "publication," it does not qualify as a "periodical or a
magazine" for purposes of the printing and publishing B&O tax
classification. |
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