Are subscription receipts for newspapers, magazines, periodicals, and trade journals mailed to Kansas subscribers subject to Kansas sales tax?

Plain-English summary

The taxpayer asked how Kansas Retailers' Sales tax applies to subscriptions for newspapers, magazines, periodicals, trade journals, and publications.

Subscription receipts are taxable. The Department started from the general imposition statute, K.S.A. 79-3603(a), which taxes "the gross receipts received from the sale of tangible personal property at retail within this state." It then advised that "when subscriptions for newspapers, magazines, periodicals, trade journals, and publications are taken within the state of Kansas, sent to a printer or publishing house, whether inside or outside Kansas, and where the publication is thereafter mailed to a subscriber within Kansas, the receipts from the respective subscriptions would be subject to the appropriate Kansas sales/use tax."

The controlling regulation. The Department enclosed a copy of K.A.R. 92-19-12, "which covers the sales taxation of newspapers, magazines, periodicals, trade journals and publications."

Bottom line: a subscription is treated as a retail sale of tangible personal property. If the subscription is taken in Kansas and the publication is mailed to a Kansas subscriber, the subscription receipts are subject to the appropriate Kansas sales or use tax — regardless of whether the printer or publishing house that produces the publication is inside or outside Kansas.

What this means for you

A subscription is a sale of goods, not a service

Even though a subscription is paid up front and delivered over time by mail, Kansas treats the printed publication as tangible personal property. The subscription receipts are taxed under the general retail-sales statute.

Where the printer sits does not change the answer

The ruling makes clear the publication can be sent to a printer or publishing house "whether inside or outside Kansas." What matters is that the subscription is taken in Kansas and the publication is mailed to a subscriber within Kansas.

Sales tax or use tax, depending on the seller

The ruling refers to "the appropriate Kansas sales/use tax." A Kansas seller collects Kansas retailers' sales tax; where the transaction is structured so that Kansas compensating (use) tax applies instead, that tax is owed. The point is that the subscription receipts do not escape Kansas tax.

Check the regulation for specifics

K.A.R. 92-19-12 is the detailed rule for taxing newspapers, magazines, periodicals, trade journals, and publications. A publisher or subscription seller should read that regulation for how it applies to particular publication types and delivery arrangements.

Common questions

Do I collect sales tax on magazine and newspaper subscriptions sold to Kansas customers?
Yes. Under this ruling, subscription receipts for publications mailed to Kansas subscribers are subject to the appropriate Kansas sales or use tax.

Does it matter that our printer is in another state?
No. The ruling expressly covers publications sent to a printer or publishing house "whether inside or outside Kansas." The taxable event is the subscription taken in Kansas with delivery to a Kansas subscriber.

Why is a subscription taxed at all — isn't it just information?
Kansas treats the printed publication as tangible personal property, so the subscription is a retail sale of goods under K.S.A. 79-3603(a), not a nontaxable service.

Where can I find the detailed rule?
K.A.R. 92-19-12 covers the sales taxation of newspapers, magazines, periodicals, trade journals, and publications; the Department enclosed a copy with this ruling.

Citations and references

• K.S.A. 79-3603(a) — imposes Kansas retailers' sales tax on "the gross receipts received from the sale of tangible personal property at retail within this state."
• K.A.R. 92-19-12 — the regulation covering the sales taxation of newspapers, magazines, periodicals, trade journals, and publications; enclosed with the ruling.
• K.A.R. 92-19-59 — authorizes Kansas private letter rulings; this ruling is binding only as to the requesting taxpayer and the facts presented.
• Issued November 4, 1998 by Thomas P. Browne, Jr., Tax Specialist, Office of Policy & Research, Kansas Department of Revenue.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: P-1998-183

Original ruling text

Private Letter Ruling

Body:

Office of Policy & Research

November 4, 1998

TTTTTTTTTTTTT
TTTTTTTTTTTTT
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Dear Mr. TTTTTT:

We wish to acknowledge receipt of your letter dated October 28, 1998, regarding the application of Kansas Retailers’ Sales tax.

K.S.A. 79-3603(a) imposes a sales tax upon: “The gross receipts received from the sale of tangible personal property at retail within this state. . .”

Please be advised that when subscriptions for newspapers, magazines, periodicals, trade journals, and publications are taken within the state of Kansas, sent to a printer or publishing house, whether inside or outside Kansas, and where the publication is thereafter mailed to a subscriber within Kansas, the receipts from the respective subscriptions would be subject to the appropriate Kansas sales/use tax.

For your convenience, I have enclosed a copy of K.A.R. 92-19-12, which covers the sales taxation of newspapers, magazines, periodicals, trade journals and publications.

This is a private letter ruling pursuant to K.A.R. 92-19-59. It is based solely on the facts provided in your request. If it is determined that undisclosed facts were material or necessary to an accurate determination by the department, this ruling is null and void. This ruling will be revoked in the future by the operation of law without further department action if there is a change in the statutes, administrative regulations, or case law, or published revenue ruling, that materially effects this private letter ruling. If I may be of further assistance, please contact me at your earliest convenience at (785) 296-7776.

Sincerely yours,

Thomas P. Browne, Jr.
Tax Specialist

TPB

Enc

Date Composed: 11/12/1998 Date Modified: 10/10/2001

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