Texas Comptroller of Public Accounts    STAR System


200510429L




October 25, 2005

RE: 05297736   FW: Sales Tax Question

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

Thank you for your inquiry about the collection of Texas sales and use tax on 
copies of the New York Times newspaper.  I have restated your question in part 
below, followed by my response.  

Question: The local STORE stores in CITY A and CITY B that I buy from are 
charging sales tax on the “New York Times” newspaper. The same store does not 
charge tax on the Dallas Morning News, Fort Worth Star Telegram or the Wall 
Street Journal. But they do charge the 8 cents sales tax on the “New York 
Times”.

Is STORE correct in charging this amount on a daily newspaper?

Response:  Texas Tax Code Section 151.319 provides an exemption from Texas 
sales and use tax on the purchase of a newspaper if the average price-per-copy 
is $1.50 or less over a 30-day period.  

However, based on our research, we have determined that the average 
price-per-copy over a 30-day period of the New York Times is $1.63.  The 
weekday papers cost one dollar per copy and Sunday papers sell for $5.75.  

Therefore, all copies of the New York Times, even the weekday papers sold for 
less than $1.50, are taxable.  

Complete Texas sales tax information, including rules, statutes, publications, 
and frequently asked questions can be found on the Sales and Use Tax web page 
at:  http://window.state.tx.us/taxinfo/sales/.

This opinion is based on the information presented.  Other information, though 
similar, may provide a different result.  

If you have any questions or need additional information, you can reply to this 
email, call me at 1-800-531-5441 ext. 31810, or write to Tax Policy Division, 
P. O. Box 13528, Austin, Texas 78711-3528.

Our goal is to provide you with prompt, professional service.  Please take a 
moment to complete our on-line survey at 
http://aixtcp.cpa.state.tx.us/surveys/tpsurv/.

Regards,


Robin Corrigan
Tax Policy
Texas Comptroller of Public Accounts




ACCESSION NUMBER: 200510429L
SUPERSEDED: N
DOCUMENT TYPE: L
DATE: 10/25/2005
TAX TYPE: SALES