Were regularly mailed envelopes containing coupons and advertisements from multiple vendors subject to Florida sales and use tax?

Plain-English summary

The Florida Department of Revenue concluded that a publisher's regularly issued multi-vendor coupon and advertising mail-outs were exempt from sales and use tax.

The mail-outs were not treated as exempt advertising publications because coupon packets were not in the format of a publication. They instead qualified under the separate exemption for materials consisting exclusively of advertisements, distributed free by mail in an envelope, with advertisements from at least 10 persons on a regular basis.

The packet's attachment to its sealed addressed envelope did not prevent the Department from treating it as contained in an envelope.

What this means for you

Direct-mail advertisers and printers

Test the exact statutory route. A coupon packet may fail the publication exemption but still qualify under the multi-advertiser envelope exemption.

Tax professionals

Document that the content is exclusively advertising, the mailing is free and regular, and the envelope contains ads from at least 10 advertisers.

Common questions

Q: Did the Department treat the coupon packet as a publication?
A: No.

Q: Why was it still exempt?
A: It met the separate exemption for regularly mailed envelopes containing only advertisements from 10 or more advertisers.

Citations and references

• Fla. Stat. §§ 212.08(7)(w), 212.08(7)(ccc), and 213.22
• Fla. Admin. Code r. 12A-1.008(3) and (5)
• Department of Revenue v. Val-Pak Direct Marketing Systems, Inc., 862 So. 2d 1 (Fla. 2d DCA 2003)

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 13A-019

Original ruling text

Executive Director
Marshall Stranburg

QUESTION: Are certain printed mail-outs subject to sales and use tax?
ANSWER: No.

August 23, 2013

Re:

Technical Assistance Advisement – TAA 13A-019
Taxability of Advertising Mail-outs
Sales and Use Tax
Section 212.08(7)(w), 212.08(7)(ccc), Florida Statutes (F.S.)
Rule 12A-1.008(3) & (5), Florida Administrative Code (F.A.C.)
XXX (“the Taxpayer”)
FEI #: XXX

Dear XXX:
This is in response to your letter dated XXX, requesting this Department’s issuance of a
Technical Assistance Advisement (“TAA”) pursuant to Section 213.22, F.S., and Rule Chapter
12-11, Florida Administrative Code (F.A.C.), regarding the taxability of certain printed
materials. An examination of your letter has established that you have complied with the
statutory and regulatory requirements for issuance of a TAA. Therefore, the Department is
hereby granting your request for a TAA.
ISSUE
The issue is whether certain printed mail-outs are subject to sales and use tax.
FACTS
The Taxpayer is the publisher of a regularly issued multi-vendor advertising mail-out. The mailout consists exclusively of advertisements for multiple vendors who pay the Taxpayer to include
them in the mail-out. The mail-outs contain coupons from multiple vendors and are sealed and
attached to an envelope.

Child Support Enforcement – Ann Coffin, Director  General Tax Administration – Maria Johnson, Director
Property Tax Oversight – James McAdams, Director  Information Services – Tony Powell, Director

www.myflorida.com/dor
Tallahassee, Florida 32399-0100

Technical Assistance Advisement
Page 2 of 4
TAXPAYER POSITION
It is your position the subject mail-outs represent publications subject to either of the two
exemptions found in Florida Statutes for publications distributed free of charge, on a regular
basis, by the U.S. Postal Service. The two statutory provisions you allude to are s. 212.08(7)(w)
and s. 212.08(7)(ccc), F.S.
You indicate the mail-outs are in compliance with s. 212.08(7)(w), F.S., as a publication, and
provide in part:
The [mail-out] is a bound publication that is identified as a specific issue. For example [a
mail-out] would be identified as follows:
AUTUMN
ONLINE-ONLY OFFERS
VALID OCTOBER 15 - NOVEMBER 11, 2012 1
You indicate the subject mail-outs are also subject to the exemption for Advertising materials
distributed free of charge by mail in an envelope. 2 You indicate in part the following:
The mailer is enclosed by a paper container that is sealed and addressed as an envelope.
Since the wrap-around envelops the mailer we conclude that it meets the criteria for
“mailing in an envelope”.
LAW AND DISCUSSION
Section 212.08(7)(w), F.S., provides:
Certain newspaper, magazine, and newsletter subscriptions, shoppers, and community
newspapers.--Likewise exempt are newspaper, magazine, and newsletter subscriptions in
which the product is delivered to the customer by mail. Also exempt are free, circulated
publications that are published on a regular basis, the content of which is primarily
advertising, and that are distributed through the mail, home delivery, or newsstands. The
exemption for newspaper, magazine, and newsletter subscriptions which is provided in
this paragraph applies only to subscriptions entered into after March 1, 1997.
Rule 12A-1.008(1)(a), F.A.C., provides:
For purposes of this rule, the term “periodicals” includes newspapers, community
newspapers, shoppers, newsletters, magazines and other periodicals, but excludes books,
whether published in serial form or otherwise.
1
2

The submitted samples did not contain this heading, although they do indicate the validation dates.
See s. 212.08(7)(ccc), F.S.

Technical Assistance Advisement
Page 3 of 4
Rule 12A-1.008(3)(a), F.A.C., provides:
Periodicals that meet the following requirements are exempt from tax:

1. The periodical is published on a regular basis;
2. The periodical is distributed free of charge to the recipient by mail, home
   delivery, rack machines, newsstands, or similar method; and
3. The content of the periodical is primarily advertising.
   In the case, Department of Revenue v. Val-Pak Direct Marketing Systems, Inc., 862 So.2d 1
   (Fla. App. 2 Dist. 2003), the court found that coupons mailed in envelopes were not materials
   subject to the shopper exemption, because they were not “in the format of a publication.”
   Accordingly, it cannot be successfully argued that the subject advertising materials constitute a
   publication. However, the statutory change following Val-Pak allows an exemption for materials
   distributed free of charge by mail in an envelope. This exemption is found in s. 212.08(7)(ccc),
   F.S., and provides:
   Advertising materials distributed free of charge by mail in an envelope.--Likewise
   exempt are materials consisting exclusively of advertisements, such as individual
   coupons or other individual cards, sheets, or pages of printed advertising, that are
   distributed free of charge by mail in an envelope for 10 or more persons on a monthly,
   bimonthly, or other regular basis.
   The corresponding rule provision can be found in Rule 12A-1.008(5)(a), F.A.C., which provides:
   Certain advertising materials are exempt from sales and use tax only if the materials:
4. Consist exclusively of advertisements, such as individual coupons or other
   individual cards, sheets, or pages of printed advertising; and
5. Are distributed free of charge by mail in an envelope; and
6. The envelope contains advertisements from 10 or more persons (advertisers).
   The subject mail-outs are contained in an envelope (notwithstanding they are attached to it).
   Accordingly, the exemption is applicable provided the mailings are done on a regular basis as
   indicated.
   RESPONSE
   The subject printed mail-outs are not subject to sales and use tax.
   This response constitutes a Technical Assistance Advisement under Section 213.22, F.S., which
   is binding on the Department only under the facts and circumstances described in the request for
   this advice as specified in Section 213.22, F.S. Our response is predicated on those facts and the

Technical Assistance Advisement
Page 4 of 4
specific situation summarized above. You are advised that subsequent statutory or administrative
rule changes, or judicial interpretations of the statutes or rules, upon which this advice is based,
may subject similar future transactions to a different treatment than expressed in this response.
You are further advised that this response, your request and related backup documents are public
records under Chapter 119, F.S., and are subject to disclosure to the public under the conditions
of s. 213.22, F.S. Confidential information must be deleted before public disclosure. In an effort
to protect confidentiality, we request you provide the undersigned with an edited copy of your
request for Technical Assistance Advisement, the backup material and this response, deleting
names, addresses and any other details which might lead to identification of the taxpayer. Your
response should be received by the Department within 15 days of the date of this letter.
Sincerely,

R. Clay Brower
Revenue Program Administrator
Technical Assistance and Dispute Resolution
(850) 717-6306
RCB/
Ctrl# 143938