California – Periodicals Clarified Regulation 1590 Revised For Mixed (Printed/Electronic) Subscriptions Effective October 1, 2016

SALT Report 3856 – The State Board of Equalization announced that the recently adopted amendments to Sales and Use Tax Regulation 1590, Newspapers and Periodicals, were approved by the Office of Administrative Law and filed with the Secretary of State on August 16, 2016.  The effective date of the amendments is October 1, 2016.  The amendments clarify the application of tax to lump-sum charges for mixed newspaper subscriptions that include the right to access digital content.

Technology changes compelled clarification of Regulation 1590. Periodicals delivered electronically and in a physically tangible form (mixed transaction) needed to be addressed. The changes to this regulation also include a number of specific certificate requirements in order to properly document the specific types of exemptions considered.

For further Information:

https://www.boe.ca.gov/meetings/pdf/1590IDPweb071715.pdf

https://www.boe.ca.gov/meetings/pdf/1590SDPweb091815.pdf

https://www.boe.ca.gov/regs/reg_1590_2016.htm

https://www.boe.ca.gov/regs/pdf/Reg1590_OAL_Approval_2016.pdf