Is a monthly subscription newsletter a tax-exempt periodical?

Plain-English summary

Brownstone Publishers, Inc. publishes the "New York CO-OP & Condo Insider," a monthly subscription newsletter ($395 for twelve issues) with more than 600 paying subscribers, covering the conversion of New York apartment houses to co-ops and condos and related legal and market developments. It is available to anyone who requests and pays for a subscription. Each issue (typically 26–48 pages) contains a variety of articles researched and written by Brownstone's staff; the articles are unsigned, but a staff box in every issue names the people who prepare them. Brownstone asked whether the newsletter is a tax-exempt periodical.

The Department held that it qualifies as a periodical under 20 NYCRR § 528.6(c), meeting every requirement:

• Published at least four times a year — it comes out twelve times a year.
• Not a book — it does not, singly or when successive issues are combined, constitute a book.
• Available to the public — Brownstone furnishes a subscription to anyone who pays.
• Continuity of title and general nature of content from issue to issue.
• A variety of articles by different authors devoted to a field of endeavor. Even though the articles are unsigned, the newsletter has a staff of writers who originally prepare the articles, which satisfies the "different authors" test under § 528.6(c)(2).

Because it is a periodical, its sale is exempt from sales tax under Tax Law § 1115(a)(5).

What this means for you

If you publish a newsletter or other subscription periodical: You may qualify for the periodical exemption even if you're a small publisher and even if your articles are unsigned. The key is meeting all five § 528.6(c) tests — most importantly, publishing at least quarterly, not being a "book," being available to the public, having continuity, and carrying a variety of articles. A staff of writers preparing unsigned articles counts as "different authors."

Being a "newsletter" doesn't disqualify you. The regulation expressly says a newsletter can be a periodical if it meets the standards. Second-class mailing status with the Postal Service is a helpful (not required) indicator.

The exemption is about the publication, not the subject. A tightly focused trade newsletter still qualifies as long as it carries a variety of articles within its field.

Common questions

Q: Our newsletter's articles are unsigned — can it still be an exempt periodical?
A: Yes. If a staff of writers originally prepares the articles, that satisfies the "variety of articles by different authors" requirement under § 528.6(c)(2).

Q: How often do we have to publish?
A: At least four times a year. A monthly like the Insider easily meets that.

Q: Does it matter that it's a niche, subscription-only publication?
A: No, as long as it's available to the public (anyone who pays can subscribe) and meets the other criteria. Then its sale is exempt under § 1115(a)(5).

Citations and references

Statute and regulation:

• Tax Law § 1115(a)(5) — exemption for periodicals
• 20 NYCRR § 528.6(c) — definition of a periodical (five criteria; newsletters and staff-written unsigned articles)

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao_1989.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a89_16s.pdf

Original ruling text

New York State Department of Taxation and Finance

Taxpayer Services Division
Technical Services Bureau

TSB-A-89 (16)S
Sales Tax
June 28, 1989

STATE OF NEW YORK
COMMISSIONER OF TAXATION AND FINANCE
ADVISORY OPINION

PETITION NO. S881219B

On December 19, 1988 a Petition for Advisory Opinion was received from Brownstone
Publishers, Inc. 304 Park Ave. South, New York, N,Y. 10010.
The issue raised is whether petitioner's publication "New York CO-OP & Condo Insider" is
a periodical for purposes of Article 28 of the Tax Law and thus exempt from sales tax pursuant to
section 1115(a)(5) of the Tax Law.
According to the Petitioner, New York CO-OP & Condo Insider is a monthly subscription
newsletter that costs $395 for twelve monthly issues. It currently has more than 600 paying
subscribers. It is published twelve times annually and is normally mailed to subscribers during the
first ten days of any given month. It is available for circulation to the general public. Company policy
is to furnish a subscription to anyone who requests such a subscription and is willing to pay. It's
readers include real estate brokers, developers, cooperative conversion plan sponsors, and attorneys.
Each issue contains a variety of articles, all of them conceived of, researched, written, edited,
copyedited, and typeset by employees of Brownstone Publishers, Inc. The purpose of the newsletter
is to present timely and useful information about the conversion of New York apartment houses to
cooperatives and condominiums, developments in the law of condominiums and cooperatives, and
insights on the New York cooperative and condominium market. Every single issue of New York
CO-OP & Condo Insider addresses these questions.
The first issue appeared in April, 1983. Since then, it has grown to its current typical length
of 26-48 pages. The current editorial mix is comprised of in-depth articles prepared by its staff, briefs
and comments on court cases and rulings, and analysis and reportage on the current state of the
cooperative and condominium sales market. Articles in the newsletter are not signed, but there is a
staff box in every issue showing the names of those who prepare the articles for the newsletter and
who have responsibility for it.
To guide readers to the many different types of articles that appear in their monthly issues,
Brownstone prepares a quarterly, semi-annual, and annual index to New York CO-OP & Condo
Insider. Only by using this index can one easily find all articles that have appeared on a single
subject. The issues do not, either singly or when successive issues are put together constitute a book.
Section 528.6(c) of the Sales and Use tax regulations defines a periodical as follows:
(c) Definition of a periodical. (1) In order to constitute a periodical, a publication
must conform generally to the following requirements:
TP-9 (9/88)

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TSB-A-89 (16)S
Sales Tax
June 28, 1989
(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; 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.
(2)
A publication which may be known as or considered to be a newsletter may qualify
as a periodical if it conforms to the above standards. Where a newsletter has no signed articles, but
has a staff of writers who originally prepare articles, such publication will be considered to have
articles by different authors. If a publication has been classified by the United States Postal Service
as one which is entitled to second class mailing privileges, that fact will be considered in determining
whether or not the publication is a periodical."
The "New York C0-OP & Condo Insider" meets all of the criteria set forth in section 528.6(c)
so as to qualify as a periodical. As such its sale is exempt from sales tax pursuant to section
1115(a)(5) of the Tax Law.

DATED: June 28, 1989

s/FRANK J. PUCCIA
Director
Technical Services Bureau

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