NY TSB-A-84(29)S Sales Tax 1984-10-15

When an advertising supplement is inserted into a shopping paper, is the supplement's area counted in the percentage of the publication devoted to advertising?

Short answer: When an advertising supplement is included as part of a shopping paper, the area of that supplement is not counted in computing the percentage of the publication's printed area devoted to advertising versus other matter. This Modified Advisory Opinion revises the opinion issued to the New York State Publishers Association on February 9, 1981 (TSB-H-81(34)S) to adopt that rule, and refers to TSB-M-83(20)S. Because a shopping paper's tax treatment can turn on how much of its printed area is advertising, excluding an inserted advertising supplement's area from that calculation makes it easier for the publication to stay under the advertising threshold. The opinion states only this computation rule; it does not restate the underlying exemption's statutory basis or the specific percentage threshold.

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This page answers the general question as of 1984. Ezel answers yours, under current New York tax law, with citations.

Disclaimer: This is an official New York State Department of Taxation and Finance Advisory Opinion (TSB-A) — here a Modified Advisory Opinion — issued by the Office of Counsel. It is limited to the facts set forth in it and binds the Department only with respect to the petitioner to whom it was issued, and only if that petitioner fully and accurately described all relevant facts; another taxpayer cannot rely on it. It modifies an earlier opinion (TSB-H-81(34)S) and reflects the law, regulations, and Department policy in effect when issued, which may since have changed. New York State and local sales taxes are administered centrally by the Department. This summary is informational only and is not legal or tax advice. Consult a licensed New York tax professional about your specific situation.

About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.

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Plain-English summary

This is a Modified Advisory Opinion requested by the New York State Publishers Association. It revises an earlier opinion the Department issued to the Association on February 9, 1981 (TSB-H-81(34)S).

The modification adopts one computation rule: where an advertising supplement is included as part of a shopping paper, the area of the supplement is not to be included when computing the percentage of the publication's printed area devoted to advertising versus the area devoted to other matter. The opinion refers to TSB-M-83(20)S.

Shopping papers can be treated differently for sales-tax purposes depending on how much of their content is advertising, so excluding an inserted advertising supplement's area from that calculation helps a publication keep its advertising percentage lower. The opinion states only this rule; it does not restate the underlying exemption's statutory basis or the specific advertising-percentage threshold, so this summary does not either.

What this means for you

Inserted advertising supplements don't count against a shopping paper's advertising ratio. If your shopping paper's treatment depends on staying under an advertising-percentage limit, an advertising supplement included with it is left out of the numerator and denominator of that calculation.

This is a modification — read it with the guidance it points to. It changes the 1981 opinion (TSB-H-81(34)S) and cross-references TSB-M-83(20)S. For the full rule (including the applicable threshold and how "advertising" and "shopping paper" are defined), consult those documents and the current statutes and regulations.

Treat the details as era-specific. This is 1983–84 guidance about how to measure advertising area. Definitions and thresholds for shopping papers and related publications may have changed since; verify against current law before relying on it.

Common questions

Q: I insert an advertising supplement into my shopping paper. Does its area count toward my advertising percentage?
A: No. Under this modified opinion, the area of an advertising supplement included as part of a shopping paper is not included in computing the percentage of the publication devoted to advertising.

Q: What's the advertising-percentage threshold, and what statute sets it?
A: This opinion doesn't state either — it addresses only the measurement rule for inserted supplements. Check TSB-H-81(34)S, TSB-M-83(20)S, and the current statutes/regulations for the threshold and underlying basis.

Q: Can my publication rely on this opinion?
A: No. Like all advisory opinions, it binds the Department only as to the petitioner (the New York State Publishers Association) on the facts presented. Others should not rely on it.

Citations and references

Related Department guidance:

TSB-H-81(34)S — the February 9, 1981 opinion this opinion modifies
TSB-M-83(20)S — referenced Technical Services Bureau memorandum

Source

Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao_1984.htm
Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a84_29s.pdf

Original ruling text

New York State Department of Taxation and Finance
TSB-A-84(29)S
Sales Tax
October 15, 1984

Taxpayer Services Division
Technical Services Bureau

STATE OF NEW YORK
STATE TAX COMMISSION
MODIFIED ADVISORY OPINION

PETITION NO.S801112C

This modifies an Advisory Opinion issued to the New York State Publishers Association on
February 9, 1981 (TSB-H-81(34)S) so as to provide that where an advertising supplement is included
as part of a shopping paper the area of the supplement is not to be included in computing the
percentage of the printed area of the publication devoted to advertising versus the area devoted to
other matter. See TSB-M-83(20)S.

DATED: July 28, 1983

RODERICK G. W. CHU, COMMISSIONER
TP-8 (3/83)

FRANK J. PUCCIA
Director
Technical Services Bureau

GABRIEL B. DiCERBO, DEPUTY COMMISSIONER
FRANK J. PUCCIA, DIRECTOR

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