Texas Comptroller of Public Accounts    STAR System


November 15, 1988


Dear **************:

Thank you for your recent letter regarding your tax responsibility for the 
"MAP" driving guide map. 

The facts you presented in a phone conversation with Thomas Moore are restated 

1) COMPANY, is the publisher of the "MAP" driving guide map. The map gives the 
location of hotels, restaurants and other attractions located in the city. 

2) COMPANY sells advertising space to various businesses, such as hotels and 

3) The maps are freely distributed. They are placed in hotels, restaurants and 
Chambers of Commerce. They are not distributed only to the advertisers. 

4) The advertisers receive no fixed number of maps; they might not receive any 

Response: COMPANY. is selling advertising space, not tangible personal 
property. COMPANY should pay tax to the printer on the cost to print the maps 
and on all materials and equipment used to provide the service. Tax should not 
be collected from the advertisers. 

During a second phone conversation, you provided additional facts concerning 
the "trade credits" you had mentioned in your letter. The trade credit is 
actually a gift certificate which you accept in lieu of cash for advertising 
space. Sales tax would not be due when you receive the gift certificate. The 
tax is due when the certificate is exchanged for taxable items such as 
restaurant meals. The business that accepts the gift certificates as payment is 
responsible for collecting and remitting the tax on the selling price of the 
items purchased. 

You also mentioned in our phone conversation that you were considering selling 
the maps to various businesses, such as convenience stores. If you do sell 
maps, then you must obtain a sales tax permit. You must collect tax from the 
purchaser or accept a properly completed resale certificate. 

Rule 3.285 Resale Certificates; Sales for Resale and Rule 3.286 Seller's 
Purchaser's Responsibilities are enclosed for your information. 

If you have any questions or need more information, please call our toll-free 
number 1-800-252-5555. The regular number is 512/463-4600. You may write me at 
Tax Correspondence, Comptroller of Public Accounts. 


Julie Pesl
Tax Correspondence

DATE: 11/15/1988