Does Playbill qualify as a tax-exempt periodical, so its sale is exempt from New York sales and use tax?

Plain-English summary

American Theater Press, Inc. publishes Playbill and asked whether, since July 1, 1979, it has qualified as a tax-exempt periodical. Playbill is printed twelve times a year with articles and editorial content of general, cultural and theatrical interest by a variety of authors, plus a center insert of cast and theatrical information for the specific play at each theater it serves. Each month's issue has different content, and when successive issues are put together they do not form a book. Since July 1979 its masthead has advertised subscriptions, which management actively solicits nationwide, and it has continuity of title and content from issue to issue.

The Department held Playbill qualifies as a periodical.

• Periodicals are exempt. Section 1115(a)(5) exempts "periodicals" from sales and compensating use taxes.
• There's a five-part test. Under 20 NYCRR 528.6, a periodical must generally: (i) be printed at stated intervals, at least four times a year; (ii) not constitute a book, singly or when successive issues are put together; (iii) be available for circulation to the public; (iv) have continuity of title and general nature of content from issue to issue; and (v) have each issue contain a variety of articles by different authors devoted to literature, the sciences or the arts, news, or some special field.
• Playbill meets all five. It's printed monthly, isn't a book, is available to the public (with solicited subscriptions), has continuity of title and content, and carries varied articles by different authors.
• Result: since July 1, 1979, Playbill has been a periodical exempt under § 1115(a)(5).

What this means for you

A publication is exempt only if it clears every part of the periodical test. Frequency (at least quarterly), not being a book, public availability, continuity from issue to issue, and a variety of articles by different authors all have to be present. Playbill's mix of general theatrical and cultural articles — not just a single show's program — is what let it satisfy the "variety of articles by different authors" requirement.

Format and content details matter. The Department looked at concrete features: monthly frequency, changing editorial content, subscriptions available to the public, and continuity of title. If you publish something and want the periodical exemption, be ready to show each of the five factors on the face of the publication.

The exemption reaches both sales and use tax. Section 1115(a)(5) applies to sales and compensating use taxes, so a qualifying periodical is exempt on that side; publishers should still separately analyze the taxability of their production inputs and services.

Common questions

Q: What makes a publication a tax-exempt "periodical"?
A: Under 20 NYCRR 528.6 it must be printed at least four times a year, not be a book, be available to the public, have continuity of title and content, and carry a variety of articles by different authors. Meeting all five brings it within the § 1115(a)(5) exemption.

Q: Playbill is handed out at theaters — is it really "available to the public"?
A: Yes. The Department found Playbill available for circulation to the public; since July 1979 its masthead advertised subscriptions, which it solicits nationwide, satisfying that factor.

Q: Does the per-theater insert or its program-like use disqualify it?
A: No. Playbill also contains varied general, cultural and theatrical articles by different authors and has continuity of title and content, so it met all five periodical criteria despite the show-specific insert.

Citations and references

Statutes, regulations and authority:

• Tax Law § 1115(a)(5) — exempts periodicals from sales and compensating use taxes
• 20 NYCRR 528.6 — five-part definition of a "periodical": printed at least four times a year; not a book; available to the public; continuity of title and content; and a variety of articles by different authors

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao_1981.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a81_7s.pdf

Original ruling text

New York State Department of Taxation and Finance

Taxpayer Services Division
Technical Services Bureau

TSB-A-81(7)S
Sales Tax
August 7, 1981

STATE OF NEW YORK
STATE TAX COMMISSION
ADVISORY OPINION

PETITION NO. S810204A

On February 4, 1981 a Petition for Advisory Opinion was received from American Theater
Press, Inc., 100 Avenue of the Americas, New York, New York 10013.
The issue raised is whether, since July 1, 1979, Petitioner's publication, Playbill, has qualified
as a periodical exempt from State and local sales and compensating use taxes.
Petitioner publishes Playbill, in printed form, twelve times a year. The magazine consists of
articles and editorial content of general, cultural and theatrical interest written by a variety of
different authors and is published on a monthly basis. It also contains an individual center insert of
cast and other theatrical information for the particular play booked to each of the theaters Playbill
services. Each month's issue contains different editorial content and new articles. When successive
issues are put together Playbill does not constitute a book.
Since July, 1979 the masthead of Playbill has included notice of the availability of
subscriptions. The present policy of Playbill's management is vigorously to solicit subscribers to
renew their subscriptions prior to the completion of the subscription year. Subscriptions for Playbill
are also solicited throughout the United States from large magazine fulfillment businesses.
Playbill has continuity of title and content from issue to issue. Each issue of Playbill contains
a number of articles of general interest by a variety of authors on general cultural and theatrical
subjects.
Section 1115(a)(5) of the Tax Law provides for an exemption from sales and compensating
use taxes with respect to "periodicals." The Sales and Use Tax Regulations define the term
"periodical" as follows: "(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;

(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;

JAMES H. TULLY., COMMISSIONER
TP-8 (4/80)

LOUIS M. JACOBSON, DEPUTY COMMISSIONER
FRANK J. PUCCIA, DIRECTOR

-2­
TSB-A-81(7)S
Sales Tax
August 7, 1981

(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." 20 NYCRR 528.6.

Petitioner's publication, Playbill, meets all of the criteria set forth in the above-quoted
provision of the Sales and Use Tax Regulations. Accordingly, since July 1, 1979 Petitioner's
publication, Playbill, has constituted a "periodical" within the meaning and intent of section
1115(a)(5) of the Tax Law, thus qualifying for the exemption there provided.

DATED: July 21, 1981

s/LOUIS ETLINGER
Deputy Director
Technical Services Bureau