Are a publisher's electronic (online, CD-ROM, Internet) versions of its 111 subscription publications exempt from New York sales tax as periodicals, the same as their print counterparts?

Plain-English summary

CCH Incorporated publishes 111 subscription titles covering tax, business, health care, labor relations, banking, and government policy, distributed in print and/or electronically (online, CD-ROM, Internet, Lotus Notes, disk). All are updated at least four times a year (many weekly or biweekly), are available to the general public, and carry continuity of content from issue to issue — the hallmarks of a "periodical." CCH's print editions are typically bound in three-ring binders so new pages can be inserted and old ones removed. Of the 111 titles, 28 are offered exclusively in electronic form with no print counterpart at all.

New York exempts periodicals from sales tax, and separately treats electronic newspapers/periodicals as covered "tangible personal property" — but only under specific conditions: there must be a real, tangible print edition that is shipped or sold by conventional means; the electronic version must carry the entire edition (aside from advertising) with nothing extra added; and the subscription/delivery price must be separately stated. On top of that, to count as a "periodical" at all, a publication must meet five regulatory tests, including being published in printed or written form at stated intervals at least four times a year.

Applying those rules, the Department split CCH's 111 titles into two groups. The 83 publications that exist in genuine print form are exempt periodicals — and their electronic counterparts are exempt too, as long as the electronic version mirrors the print edition and the price is separately stated. But the 28 titles that are exclusively electronic fail the very first requirement (an existing printed edition, published at stated intervals) — an electronic-only publication can never qualify as a periodical no matter how well it otherwise fits the definition, so those are subject to tax as information services under § 1105(c)(1) unless some other exemption applies. The opinion also flags that neither branch of the exemption ever covers "listings and compilations which constitute information services" or electronic versions that add content beyond the print edition.

What this means for you

Publishers offering both print and digital editions

An identical electronic mirror of a real print periodical can ride the same exemption as the print edition — but the moment the electronic version diverges in content (beyond advertising) or the price isn't separately stated, that protection is lost.

Digital-only publishers

No amount of resemblance to a traditional periodical — regular updates, continuity of content, public subscription — substitutes for an actual, existing printed edition. Purely electronic publications are taxed as information services, not exempt periodicals, under current New York law as reflected in this 2003 opinion.

Accountants and tax professionals

This is a good citation for the "print-edition prerequisite" rule for the electronic-periodical exemption, and for the reminder that "listings and compilations which constitute information services" are excluded from the periodical exemption even if bundled with otherwise-qualifying content.

Common questions

Q: Can a publication be exempt as a periodical if it's never printed on paper?
A: No. Under the regulations in effect at the time of this ruling, a periodical must be published in printed or written form at stated intervals — an electronic-only publication cannot qualify, regardless of how closely it otherwise resembles a periodical.

Q: Does the electronic version have to look exactly like the print version?
A: It must be the entire edition, with or without the print advertising, and can't include anything beyond what's in the print edition (aside from advertising) — and the price has to be separately stated to the customer.

Q: Are compilations or databases ever treated as exempt periodicals?
A: No — "listings and compilations which constitute information services" are specifically excluded from the periodical exemption, even if published at regular intervals.

Citations and references

Statutes and regulations:

• Tax Law § 1101(b)(6) (tangible personal property; electronic newspapers/periodicals)
• Tax Law § 1105(a) (retail sales tax); § 1105(c)(1) (information services)
• Tax Law § 1115(a)(5) (newspapers and periodicals exemption)
• 20 NYCRR § 528.6 (periodical exemption; definitions; exclusions)

Prior rulings referenced:

• The Bureau of National Affairs, Inc., TSB-A-98(55)S
• Market News Service, Inc., TSB-A-91(60)S
• Mark S. Klein, TSB-A-91(53)S

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao_2003.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a03_13s.pdf

Original ruling text

New York State Department of Taxation and Finance

Office of Tax Policy Analysis
Technical Services Division

TSB-A-03(13)S
Sales Tax
April 1, 2003

STATE OF NEW YORK
COMMISSIONER OF TAXATION AND FINANCE
ADVISORY OPINION

PETITION NO. S990329A

On March 29, 1999, the Department of Taxation and Finance received a Petition for
Advisory Opinion from CCH Incorporated, c/o Wolters Kluwer U.S. Corporation, 161 N. Clark St.,
48th Floor, Chicago, IL 60601-3221.
The issue raised by Petitioner, CCH Incorporated, is whether the subscription sales of 111
of its electronic publications qualify for exemption from sales and compensating use taxes by virtue
of Section 1101(b)(6) of the Tax Law which extends the definition of tangible personal property to
include the electronic distribution of complete editions of newspapers and periodicals.
Petitioner submitted the following facts as the basis for this Advisory Opinion.
Petitioner is an international publisher of business, tax, health and government publications
which are distributed through print and electronic media. As part of its Petition, Petitioner submitted
a list of 111 of its publications and various product catalogues/brochures which describe these
selections. Petitioner states that all of these publications meet all five of the regulatory
requirements of a periodical and as such are exempt from the imposition of sales and compensating
use taxes under Section 1115(a)(5) of the Tax Law. Petitioner’s electronic media products mirror
its print products.
The publications are devoted to matters in the fields of tax, business, health care, labor
relations, banking and governmental policy and regulation. The list identifies the format availability
of each publication as Print, On-Line, CD-ROM, Internet, Lotus Notes and/or Disk. The format
availability of 28 of these publications is identified as exclusively electronic on the list and/or in the
product catalogues and brochures submitted with the Petition. All of the publications are printed
or electronically updated at least four times a year, and most are updated weekly or bi-weekly.
Members of the general public may subscribe to the publications, and the central core of each
publication is continuity of content from one issue or update to the next. The print versions of these
publications generally are bound in three-ring binders, which allow for pre-punched advanced sheets
to be easily inserted and obsolete materials to be deleted from the binders.
Applicable Law and Regulations
Section 1101(b)(6) of the Tax Law defines tangible personal property, in part, as:
. . . Corporeal personal property of any nature. . . . Such term shall also
include newspapers and periodicals where the vendor ships or delivers the entire

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edition or issue of the newspaper or periodical, with or without the advertising
included in the paper edition or issue, but not including anything, other than
advertising, not in such paper edition or issue, to the purchaser by means of
telephony or telegraphy or other electronic media, but only where the amount of the
sale price to such purchaser of such newspaper or magazine or the subscription price,
in the case of a subscription to a newspaper or periodical, including any charge by
such vendor for shipping or delivery to the purchaser, is separately stated to such
purchaser.
Section 1105 of the Tax Law provides, in part:
Imposition of sales tax. – . . . there is hereby imposed and there shall be paid
a tax . . . upon:
(a) The receipts from every retail sale of tangible personal property, except
as otherwise provided in this article. (Emphasis added)
*

*

*

(c) The receipts from every sale, except for resale, of the following services:
(1) The furnishing of information by printed, mimeographed or multigraphed
matter or by duplicating written or printed matter in any other manner, including the
services of collecting, compiling or analyzing information of any kind or nature and
furnishing reports thereof to other persons. . . .
Section 1115 of the Tax Law provides, in part:
(a) Receipts from the following shall be exempt from the tax on retail sales
imposed under subdivision (a) of section eleven hundred five and the compensating
use tax imposed under section eleven hundred ten:
*

*

*

(5) Newspapers and periodicals.
Section 528.6 of the Sales and Use Tax Regulations provides, in part:
(a) Exemption. The sale of newspapers and periodicals is exempt from sales
and compensating use tax.

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*

*

*

(c) Definition of a periodical. (1) In order to constitute a periodical, a
publication must conform generally to the following requirements:
(i) it must be published in printed or written form at stated intervals, at least
as frequently as four times a year; (Emphasis added)
(ii) it must not, either singly or, when successive issues are put together,
constitute a book;
(iii) it must be available for circulation to the public;
(iv) it must have continuity as to title and general nature of content from issue
to issue; and
(v) each issue must contain a variety of articles by different authors devoted
to literature, the sciences or the arts, news, some special industry, profession, sport
or other field of endeavor.
*

*

*

(3) Nothing in this section shall be construed to exempt as a periodical the
following:
(i) advertising material, such as catalogs, flyers, pamphlets and brochures;
(ii) listings and compilations which constitute information services;
(iii) publications which are issued at stated intervals but which are books or
parts of a book.
Opinion
Petitioner is in the business of publishing a wide variety of legal reference works targeted
to audiences of high-level and technically sophisticated users in the fields of tax, business, health
care, labor relations, banking and governmental policy and regulation. Petitioner engages in the
print and electronic publication of its products. Petitioner submitted a list of 111 of its publications
and states that all of these products qualify as exempt periodicals under the provisions of Section
1115(a)(5) of the Tax Law and are not subject to sales or compensating use tax. It is noted that these
provisions do not exempt as a periodical “listings and compilations which constitute information

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services.” See Section 528.6(c)(3)(ii) of the Sales and Use Tax Regulations. These provisions also
do not exempt “publications which are issued at stated intervals but which are books or parts of a
book.” See Section 528.6(c)(3)(iii) of the Sales and Use Tax Regulations. This Advisory Opinion
does not specifically determine which, if any, of Petitioner’s publications qualify for sales tax
exemption under Section 1115(a)(5) of the Tax Law. For purposes of this Opinion, it is assumed
that, except as noted below, all of these publications are periodicals as defined in Section 528.6(c)
of the Sales and Use Tax Regulations.
Charges for the electronic versions of Petitioner’s publications may or may not be subject
to sales or use tax depending on whether they meet certain criteria. See Section 1101(b)(6) of the
Tax Law. For the electronic version of the publication to be exempt, there must be a tangible paper
edition or issue of the publication which is shipped or delivered or sold by conventional means. The
entire edition (with or without the advertising in the print version) must be transmitted to Petitioner’s
customers by electronic media. In addition, the electronic version cannot include anything (other
than advertising) which is not in the print version. Finally, the amount of the subscription price,
including Petitioner’s charge for delivery, must be separately stated to the customer (see The Bureau
of National Affairs, Inc., Adv Op Comm T&F, August 6, 1998, TSB-A-98(55)S).
In order to be considered a periodical for sales tax purposes, a publication must meet the
requirements enumerated in Section 528.6(c) of the Sales and Use Tax Regulations. Petitioner
submits that the 111 of its electronic publications in question meet all five of the regulatory
requirements of a periodical and as such are exempt from the imposition of sales or compensating
use tax. However, the format availability of 28 of these publications is identified as exclusively
electronic on the list and/or in the product catalogues and brochures submitted with the Petition. A
periodical must be published at certain stated intervals in printed or written form. See Section
528.6(c)(1)(i) of the Sales and Use Tax Regulations. Therefore, in the absence of an existing,
available paper version, an electronic publication does not qualify as an exempt periodical (see
Market News Service, Inc., Adv Op Comm T&F, August 20, 1991, TSB-A-91(60)S; Mark S. Klein,
Adv Op Comm T&F, July 29, 1991, TSB-A-91(53)S; The Bureau of National Affairs, Inc., supra).
Accordingly, to the extent that Petitioner’s publications are made available to its customers solely
on an electronic basis, i.e., on-line, CD-ROM, diskette, Internet and/or Lotus Notes, they are not
periodicals for purposes of the exemption contained in Section 1115(a) of the Tax Law and will be
subject to tax under Section 1105(c)(1) of the Tax Law, unless otherwise exempt.
On the other hand, the electronic versions of the remaining 83 print publications in question
are exempt as periodicals if their counterpart print versions qualify as periodicals and if they
constitute tangible personal property under Section 1101(b)(6) of the Tax Law as discussed above.
On this basis, the electronic publications, when sold on-line, or in a CD-ROM, diskette, Internet or
Lotus Notes format, would not be subject to sales and compensating use taxes (The Bureau of
National Affairs, Inc., supra). As discussed above, however, the electronic publications must be
identical to the print version, with the exception of advertising, in order to be exempt from tax.

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Sales by Petitioner of electronic publications which do not have the same contents as the print
version, or sales by Petitioner via electronic media of listings or compilations which constitute
information services, are subject to sales tax under Section 1105(c)(1) of the Tax Law.

DATED: April 1, 2003

NOTE:

/s/
Jonathan Pessen
Tax Regulations Specialist IV
Technical Services Division

The opinions expressed in Advisory Opinions are
limited to the facts set forth therein.