WAC 143

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

A STATEMENT OF PURPOSE AND INTENT WITH RESPECT TO THE TAXABILITY OF NEWSPAPERS AND DEFINITION OF A "NEWSPAPER"

Newspaper

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.

Tax imposed--Retail sales--Retail car rental.

Sale of computer equipment parts and services to printer or publisher.

Sales and use taxes authorized--Additional taxes authorized--Maximum rates.

Publishers of newspapers, magazines, periodicals.

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.

Newspaper supplements

B&O Tax and Out-of-State Printers The Department has issued ETA 3174.2013. This ETA explains the Department’s position regarding the business and occupation (B&O) and retail sales tax reporting responsibilities of out-of-state printers selling printed materials in Washington. This ETA does not address publishing activities or the taxability of advertising income.

TAXABILITY OF PRINT SHOPS PLATE PRODUCTION AND PRINTING CHARGES Revised 2/2/09 See ETA 3074.2009

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 ETA is being cancelled because the interim definition conflicts with and is superseded by statutory language ultimately enacted into law (RCW 82.04.214).

New "Economic Nexus" in Washington State May Impact "Foreign Corporations"

B&O Tax Reporting Requirement Continues After Business Activity Stops (Trailing Nexus)

Advertising Income from Electronic Version of Printed Newspaper Now Taxed under Printing and Publishing Classification

B&O Tax Rate Lowered Printing and/or Publishing of Newspapers

B&O Tax Rate Lowered Printing and/or Publishing of Newspapers

Computers Used in Printing & Publishing-Sales & Use Tax Exemption

Tax Attorneys and CPAs New "Economic Nexus" in Washington State May Impact Your Clients

New Apportionment Method

Printers and Publishers of Newspapers: B&O Tax Changes and Definitions

B&O Tax Rate Lowered Printing and/or Publishing of Newspapers

Registered Out-of-state Businesses Currently not Reporting Income from Service Activities - New Apportionment for Certain Income

Printers and Publishers of Newspapers: B&O Tax Changes and Definitions

B&O Tax Rate Lowered Printing and/or Publishing of Newspapers

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.

ADVERTISING CIRCULARS -- NEWSPAPER INSERTS.Advertising circulars inserted in newspapers are part of the newspaper, exempt from tax.

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.

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.

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.

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.

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.

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.

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.

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).

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.

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.

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.

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.

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.

A STATEMENT OF PURPOSE AND INTENT WITH RESPECT TO THE TAXABILITY OF NEWSPAPERS AND DEFINITION OF A "NEWSPAPER"

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.

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.