5703-9-28 Sales and use tax: newspapers and magazines.

(A) As used in this rule:

(1) "Newspaper" means an unbound publication bearing a title or name which is regularly published at least as frequently as biweekly and distributed from an established place of business to the general public primarily in a specific geographic area for a definite price per copy or subscription period. A newspaper must contain in all editions substantial news matter of international, national, or local events and will normally contain advertisements, photographs, illustrations, editorial comment, opinions, legal notices, and other announcements of public interest. Newspaper does not include a newsletter or similar unbound periodical of interest only to certain trade, professional, commercial, or hobby interests and which does not serve the purpose of providing instruction, enlightenment, or entertainment to the general public.

(2) "Community newspaper" means an unbound publication bearing a title or name that is regularly published from a fixed place of business at least as frequently as biweekly, the majority of copies of which are distributed to households in its service area, which contains news, editorial comment, opinions, features, advertisements, or other matters of public interest, provided that such publication is not owned or controlled by individuals or business concerns which publish it as an auxiliary to and essentially for the advancement of another non-newspaper business of those who own or control such publication. "Community newspaper" includes any advertising insert actually published by the same person who publishes the community newspaper and is distributed therewith.

(3) "Magazine" means a bound publication bearing a title or name which is regularly published at least as frequently as quarter annually from an established place of business for a definite price per copy or subscription period, containing articles, photographs, illustrations, news, advertisements, opinions, or similar information of interest to the general public or an identifiable portion of the general public.

(4) "Controlled circulation publication" means a magazine containing at least twenty-four pages, at least twenty-five per cent editorial content, regularly published at least as frequently as quarter annually, and circulated without charge to the recipient, provided that such publication is not owned or controlled by individuals or business concerns which conduct such publication as an auxiliary to and essentially for the advancement of the main business or calling of those who own or control them.

(B) Sales and use tax do not apply to the sale or use of:

(1) Newspapers;

(2) Community newspapers;

(3) Magazine subscriptions shipped to the consumer by second-class mail; and

(4) Magazines distributed as controlled circulation publications.

Replaces rule 5703-9-28; Eff 2-17-75; 9-27-84
Rule promulgated under: RC 5703.14
Rule authorized by: RC 5703.05
Rule amplifies: RC 5739.01 , 5739.02 , 5741.02