Florida Regulations 12A-1.008: Newspapers, Community Newspapers, Shoppers, Magazines and Other Periodicals
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(1) Newspapers, Community newpapers, shoppers, magazines, and other periodicals.
(a) For purposes of this rule, the term “”periodicals”” includes newspapers, community newspapers, shoppers, newsletters, magazines, and other periodicals, but excludes books, whether published in serial form or otherwise.
(b)1. The sale of copies of periodicals is subject to tax. The sale of subscriptions to periodicals that are delivered to a subscriber in this state by a carrier or means other than by mail, such as home delivery, is subject to tax. When the designation of delivery is in this state by means other than by mail at the beginning of the subscription period, and it is later changed to outside this state or to be delivered by mail, the sale of the subscription is subject to tax.
2. The sale of subscriptions to periodicals that are delivered to the subscriber by mail are exempt whether delivered to a customer in this state or outside this state. When the destination of delivery at the beginning of the subscription period is by mail, but it is changed during the subscription period to be delivered in this state by a carrier or by means other than by mail, the sale of the subscription is exempt.
(c) When a publisher bills or invoices the consumer directly for copies of or subscriptions to periodicals for delivery other than by mail, the publisher is required to register as a dealer and collect and remit tax. (See Fl. Admin. Code R. 12A-1.060)
(d)1.a. When a publisher sells newspapers to its carriers and the carriers bill their customers and collect the payments, the publisher may elect to remit the applicable tax due for the carriers. The Department will authorize a publisher that uses carriers to sell its newspapers to remit tax on the retail sales price charged to the ultimate consumer in lieu of having the carrier register as a dealer and remit the tax, if the publisher properly complies with the provisions of Fl. Admin. Code R. 12A-1.0911, Self-Accrual Authorization.
b. A publisher that has elected to remit the tax due for its carriers may take a credit for the amount of tax paid on the uncollected charges for periodicals credited to the carrier’s account. The publisher should obtain for its records a signed statement from the carrier indicating the uncollected amount of the retail sales price charged to its customers. (See Fl. Admin. Code R. 12A-1.012)
c. For purposes of this rule, “”carrier”” means any independent contractor, agent, street news vendor, or other person distributing periodicals on their own account and not as an employee of the publisher.
2. Any person who purchases newspapers from a publisher that has not elected to remit the tax due as provided in subparagraph 1., is required to register as a dealer and collect and remit tax on the retail sales price of the newspaper. Dealers registered with the Department may extend a copy of their Annual Resale Certificate (Form DR-13) to the publisher to purchase newspapers for resale tax exempt.
(2) Periodicals sold through rack machines.
(a) The sale of periodicals through rack machines is a sale of tangible personal property through vending machines, as defined in Florida Statutes § 212.0515(1), subject to tax at the rate established in Florida Statutes § 212.0515(2) A notice must be conspicuously displayed on the face of the rack machine that the purchase price of a copy includes sales tax.
1. If a rack machine is owned by a publisher and serviced by the publisher’s employees, the publisher is required to remit tax on sales made through such machine.
2. If a rack machine is owned by a retail establishment and is serviced by the employees of that establishment, the retail establishment is required to remit tax on sales made through such machine.
3. If a rack machine is owned and serviced by a carrier of a publisher who has elected to remit tax for its carriers, as provided in paragraph (1)(d), the publisher is required to remit tax on sales made through such machine.
4. If a rack machine is owned and serviced by a carrier of a publisher that has not elected to remit tax for its independent carriers, the carrier is required to remit tax on sales made through such machine.
(b) Owners or operators of rack machines through which sales are made must obtain a separate Sales and Use Tax Certificate of Registration (Form DR-11) for each county in which such machines are located. One Sales and Use Tax Certificate of Registration is sufficient for all the rack machines and devices within a single county. (See Fl. Admin. Code R. 12A-1.060)
(c) For guidelines on the purchase or repair of rack machines, see Fl. Admin. Code R. 12A-1.044
(d) When a rack machine is placed on location by the owner of the machine under a written agreement, the terms of the agreement will govern whether the lease is a lease or license to use tangible personal property or a lease or license to use real property. For guidelines on the purchase or lease of rack machines and the lease or license to use real property for the placement of rack machines, see Fl. Admin. Code R. 12A-1.044
(3) Periodicals exempt from tax.
(a) Periodicals that meet the following requirements are exempt from tax:
1. The periodical is published on a regular basis;
2. The periodical is distributed free of charge to the recipient by mail, home delivery, rack machines, newsstands, or similar method; and,
3. The content of the periodical is primarily advertising.
(b) The sale of subscriptions to periodicals that are delivered to the subscriber by mail are exempt.
(c) Distributors of tax exempt periodicals may issue an exemption certificate to their vendors in lieu of paying tax on the publishing or printing costs of, or for the purchase of items, such as paper and ink, that are incorporated into and become a component part of, the publication.
(4) Inserts distributed with periodicals.
(a) Inserts, such as magazines, handbills, circulars, flyers, advertising supplements, and other printed materials distributed with a newspaper, community newspaper, shopper, or magazine are a component part of the newspaper, community newspaper, shopper, or magazine.
(b) Inserts are exempt from tax when:
1. The inserts are either printed by the publisher of the newspaper, community newspaper, shopper, or magazine or delivered directly to the publisher by any other printer for inclusion in a distributed newspaper, community newspaper, shopper, or magazine; and
2. The inserts are labeled as part of the designated newspaper, community newspaper, shopper, or magazine in the masthead, logo, gang logo, or supplement line of the newspaper, community newspaper, shopper, or magazine to which they are inserted; and,
3. If the purchaser of the insert acquires the insert from a dealer other than the publisher of the periodical, the purchaser must present to the selling dealer a copy of the purchaser’s Annual Resale Certificate (Form DR-13) or an exemption certificate, as provided in Fl. Admin. Code R. 12A-1.038, stating that the publication is exempt from tax pursuant to Section 212.08(7)(w), F.S.
(5) Advertising materials distributed free of charge.
(a) Certain advertising materials are exempt from sales and use tax only if the materials:
1. Consist exclusively of advertisements, such as individual coupons or other individual cards, sheets, or pages of printed advertising; and,
2. Are distributed free of charge by mail in an envelope; and,
3. The envelope contains advertisements from 10 or more persons (advertisers).
(b) Sales and use tax is not due on the purchase of materials, such as paper, ink, envelopes, glue, or replenisher, that are incorporated into and become a component part of the exempt advertising materials. No use tax is imposed on the cost of manufacturing, producing, processing, or fabricating the exempt advertising materials. Dealers registered with the Department may extend a copy of their Annual Resale Certificate at the time of purchase, as provided in Fl. Admin. Code R. 12A-1.039, to purchase materials that will be incorporated into and become a component part of the tax-exempt advertising materials.
(6) Periodicals sold or distributed by associations.
(a) Periodicals that are provided by an association to its members for a charge that is separate and apart from the payment of membership dues are considered to be sold by the association. If an association indicates on it dues invoices, membership billing statements, dues notices, or membership applications that a specified portion of the dues payment by the member is attributed to a periodical subscription, the amount specified for the subscription constitutes a sale of a subscription to the specified periodical.
(b) The charge for copies of periodicals, and subscriptions to periodicals that are not delivered to the purchaser by mail, are subject to tax. However, charges for subscriptions to periodicals that are delivered by mail to the member are exempt, whether the charge for such subscription is separately stated or included in the members’ dues.
(c) Associations that make taxable sales of copies of periodicals and of subscriptions to periodicals are required to register with the Department, and collect and remit the applicable tax on such sales. (See Fl. Admin. Code R. 12A-1.060) Associations may issue a copy of their Annual Resale Certificate to their vendors in lieu of paying tax on the publishing or printing costs of, or for the purchase of items, such as paper and ink, that are incorporated into and become a component part of, a periodical that is sold to its members.
(d)1. An association that publishes a periodical for distribution to its members is not selling such publications when:
a. Each member is entitled to receive the periodical in return for payment of dues; and,
b. There is no charge made for the periodical separate and apart from the payment of, or designated as a component part of, membership dues.
2. The purchase of printing or the cost of producing such periodicals by the association is subject to tax. If the association prints or otherwise produces the periodical itself, it is required to pay tax on such publications, as provided in Florida Statutes § 212.06(16)
(7) Materials, supplies, and services used in periodicals.
(a) The purchase of materials and supplies, which become a component part of a periodical for resale, or for distribution free of charge as provided in subsection (3), is exempt from sales and use tax. Examples of such items are: paper stock, including newsprint; printer’s ink; and dry spray powder that is used to speed the drying of ink on printed matter. Publishers whose business activity is limited to the tax exempt distribution of periodicals, as provided in subsection (3), are not required to register with the Department as a dealer and may issue an exemption certificate, as provided in Fl. Admin. Code R. 12A-1.038, to the selling dealer to purchase such supplies and materials tax exempt. Dealers registered with the Department may present a copy of the dealer’s Annual Resale Certificate (Form DR-13) to the selling dealer to purchase such supplies and materials tax exempt.
(b) If a newspaper company employs another company or a printer to print its newspapers, the charge for printing is exempt when the purchaser presents a copy of the purchaser’s Annual Resale Certificate (Form DR-13) to the selling printer or newspaper company. Publishers whose business activity is limited to the tax exempt distribution of periodicals, as provided in subsection (3), may issue an exemption certificate, as provided in Fl. Admin. Code R. 12A-1.038, stating that the publication is exempt from tax pursuant to Section 212.08(7)(w), F.S., to the selling printer or publishing company.
(c) The purchase of items and materials used one time only for packaging periodicals, without which the delivery of the periodical would be impractical, or for the convenience of the customer, is exempt. Examples of such packaging materials are: boxes, cans, mailing and wrapping paper, wax and plastic bags, twine, wire and steel band material, and shipping tags.
(d) The charge for information services, such as news research services, including photo and news services, furnished to newspapers is exempt. The charge for press clipping services is exempt. See Fl. Admin. Code R. 12A-1.062
(e) The purchase of expendable materials, supplies, and other items that do not become a component part of, or accompany, the periodical for sale is subject to tax. Examples of such items are: rosin paste, gummed paste, flash bulbs, felt packing, art supplies, photographs, engravings, cuts, mats, mat services, chemicals and additives used for processing printed materials, chemicals used as cleaning agents or detergents, blankets, rollers, matrix, wire machines, and other production and packaging equipment.
(f) The purchase, production, or creation of film, photographic paper, dyes used for embossing and engraving, artwork, typography, lithographic plates, and negatives used in producing periodicals for sale is subject to tax. When such items are manufactured, produced, compounded, processed, fabricated, or created by the publisher for his or her own use, the publisher shall pay tax on the cost price of such items. See Fl. Admin. Code R. 12A-1.043 For the tax exemption provided for the purchase, production, or creation of these items to printers whose business is classified in the Standard Industrial Classification (SIC) Manual, 1987, as published by the Office of Management and Budget, Executive Office of the President, as SIC Industry Numbers 275, 276, 277, 278, or 279, see Fl. Admin. Code R. 12A-1.027
(g) The use by the publisher of copies of a periodical that does not meet the exemption requirements provided in subsection (3), through consumption of copies for use by the publisher or copies that are to be given away by the publisher, is taxable at the usual retail price thereof, if any, or at the cost price, as defined in Florida Statutes § 212.06(16)
Rulemaking Authority 212.07(1)(b), 212.18(2), 213.06(1) FS. Law Implemented 212.02(4), 212.05(1)(a), (b), (g), 212.0515(1), (2), 212.06(1)(a), (b), (16), 212.07(1), (2), 212.08(7)(o), (v), (w), (yy), (ccc), 212.18(3)(a) FS. History-New 10-7-68, Amended 1-7-70, 6-16-72, Formerly 12A-1.08, Amended 4-22-86, 12-13-88, 1-30-91, 3-17-94, 3-20-96, 6-19-01, 1-28-08.
Terms Used In Florida Regulations 12A-1.008
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Personal property: All property that is not real property.
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
(b)1. The sale of copies of periodicals is subject to tax. The sale of subscriptions to periodicals that are delivered to a subscriber in this state by a carrier or means other than by mail, such as home delivery, is subject to tax. When the designation of delivery is in this state by means other than by mail at the beginning of the subscription period, and it is later changed to outside this state or to be delivered by mail, the sale of the subscription is subject to tax.
2. The sale of subscriptions to periodicals that are delivered to the subscriber by mail are exempt whether delivered to a customer in this state or outside this state. When the destination of delivery at the beginning of the subscription period is by mail, but it is changed during the subscription period to be delivered in this state by a carrier or by means other than by mail, the sale of the subscription is exempt.
(c) When a publisher bills or invoices the consumer directly for copies of or subscriptions to periodicals for delivery other than by mail, the publisher is required to register as a dealer and collect and remit tax. (See Fl. Admin. Code R. 12A-1.060)
(d)1.a. When a publisher sells newspapers to its carriers and the carriers bill their customers and collect the payments, the publisher may elect to remit the applicable tax due for the carriers. The Department will authorize a publisher that uses carriers to sell its newspapers to remit tax on the retail sales price charged to the ultimate consumer in lieu of having the carrier register as a dealer and remit the tax, if the publisher properly complies with the provisions of Fl. Admin. Code R. 12A-1.0911, Self-Accrual Authorization.
b. A publisher that has elected to remit the tax due for its carriers may take a credit for the amount of tax paid on the uncollected charges for periodicals credited to the carrier’s account. The publisher should obtain for its records a signed statement from the carrier indicating the uncollected amount of the retail sales price charged to its customers. (See Fl. Admin. Code R. 12A-1.012)
c. For purposes of this rule, “”carrier”” means any independent contractor, agent, street news vendor, or other person distributing periodicals on their own account and not as an employee of the publisher.
2. Any person who purchases newspapers from a publisher that has not elected to remit the tax due as provided in subparagraph 1., is required to register as a dealer and collect and remit tax on the retail sales price of the newspaper. Dealers registered with the Department may extend a copy of their Annual Resale Certificate (Form DR-13) to the publisher to purchase newspapers for resale tax exempt.
(2) Periodicals sold through rack machines.
(a) The sale of periodicals through rack machines is a sale of tangible personal property through vending machines, as defined in Florida Statutes § 212.0515(1), subject to tax at the rate established in Florida Statutes § 212.0515(2) A notice must be conspicuously displayed on the face of the rack machine that the purchase price of a copy includes sales tax.
1. If a rack machine is owned by a publisher and serviced by the publisher’s employees, the publisher is required to remit tax on sales made through such machine.
2. If a rack machine is owned by a retail establishment and is serviced by the employees of that establishment, the retail establishment is required to remit tax on sales made through such machine.
3. If a rack machine is owned and serviced by a carrier of a publisher who has elected to remit tax for its carriers, as provided in paragraph (1)(d), the publisher is required to remit tax on sales made through such machine.
4. If a rack machine is owned and serviced by a carrier of a publisher that has not elected to remit tax for its independent carriers, the carrier is required to remit tax on sales made through such machine.
(b) Owners or operators of rack machines through which sales are made must obtain a separate Sales and Use Tax Certificate of Registration (Form DR-11) for each county in which such machines are located. One Sales and Use Tax Certificate of Registration is sufficient for all the rack machines and devices within a single county. (See Fl. Admin. Code R. 12A-1.060)
(c) For guidelines on the purchase or repair of rack machines, see Fl. Admin. Code R. 12A-1.044
(d) When a rack machine is placed on location by the owner of the machine under a written agreement, the terms of the agreement will govern whether the lease is a lease or license to use tangible personal property or a lease or license to use real property. For guidelines on the purchase or lease of rack machines and the lease or license to use real property for the placement of rack machines, see Fl. Admin. Code R. 12A-1.044
(3) Periodicals exempt from tax.
(a) Periodicals that meet the following requirements are exempt from tax:
1. The periodical is published on a regular basis;
2. The periodical is distributed free of charge to the recipient by mail, home delivery, rack machines, newsstands, or similar method; and,
3. The content of the periodical is primarily advertising.
(b) The sale of subscriptions to periodicals that are delivered to the subscriber by mail are exempt.
(c) Distributors of tax exempt periodicals may issue an exemption certificate to their vendors in lieu of paying tax on the publishing or printing costs of, or for the purchase of items, such as paper and ink, that are incorporated into and become a component part of, the publication.
(4) Inserts distributed with periodicals.
(a) Inserts, such as magazines, handbills, circulars, flyers, advertising supplements, and other printed materials distributed with a newspaper, community newspaper, shopper, or magazine are a component part of the newspaper, community newspaper, shopper, or magazine.
(b) Inserts are exempt from tax when:
1. The inserts are either printed by the publisher of the newspaper, community newspaper, shopper, or magazine or delivered directly to the publisher by any other printer for inclusion in a distributed newspaper, community newspaper, shopper, or magazine; and
2. The inserts are labeled as part of the designated newspaper, community newspaper, shopper, or magazine in the masthead, logo, gang logo, or supplement line of the newspaper, community newspaper, shopper, or magazine to which they are inserted; and,
3. If the purchaser of the insert acquires the insert from a dealer other than the publisher of the periodical, the purchaser must present to the selling dealer a copy of the purchaser’s Annual Resale Certificate (Form DR-13) or an exemption certificate, as provided in Fl. Admin. Code R. 12A-1.038, stating that the publication is exempt from tax pursuant to Section 212.08(7)(w), F.S.
(5) Advertising materials distributed free of charge.
(a) Certain advertising materials are exempt from sales and use tax only if the materials:
1. Consist exclusively of advertisements, such as individual coupons or other individual cards, sheets, or pages of printed advertising; and,
2. Are distributed free of charge by mail in an envelope; and,
3. The envelope contains advertisements from 10 or more persons (advertisers).
(b) Sales and use tax is not due on the purchase of materials, such as paper, ink, envelopes, glue, or replenisher, that are incorporated into and become a component part of the exempt advertising materials. No use tax is imposed on the cost of manufacturing, producing, processing, or fabricating the exempt advertising materials. Dealers registered with the Department may extend a copy of their Annual Resale Certificate at the time of purchase, as provided in Fl. Admin. Code R. 12A-1.039, to purchase materials that will be incorporated into and become a component part of the tax-exempt advertising materials.
(6) Periodicals sold or distributed by associations.
(a) Periodicals that are provided by an association to its members for a charge that is separate and apart from the payment of membership dues are considered to be sold by the association. If an association indicates on it dues invoices, membership billing statements, dues notices, or membership applications that a specified portion of the dues payment by the member is attributed to a periodical subscription, the amount specified for the subscription constitutes a sale of a subscription to the specified periodical.
(b) The charge for copies of periodicals, and subscriptions to periodicals that are not delivered to the purchaser by mail, are subject to tax. However, charges for subscriptions to periodicals that are delivered by mail to the member are exempt, whether the charge for such subscription is separately stated or included in the members’ dues.
(c) Associations that make taxable sales of copies of periodicals and of subscriptions to periodicals are required to register with the Department, and collect and remit the applicable tax on such sales. (See Fl. Admin. Code R. 12A-1.060) Associations may issue a copy of their Annual Resale Certificate to their vendors in lieu of paying tax on the publishing or printing costs of, or for the purchase of items, such as paper and ink, that are incorporated into and become a component part of, a periodical that is sold to its members.
(d)1. An association that publishes a periodical for distribution to its members is not selling such publications when:
a. Each member is entitled to receive the periodical in return for payment of dues; and,
b. There is no charge made for the periodical separate and apart from the payment of, or designated as a component part of, membership dues.
2. The purchase of printing or the cost of producing such periodicals by the association is subject to tax. If the association prints or otherwise produces the periodical itself, it is required to pay tax on such publications, as provided in Florida Statutes § 212.06(16)
(7) Materials, supplies, and services used in periodicals.
(a) The purchase of materials and supplies, which become a component part of a periodical for resale, or for distribution free of charge as provided in subsection (3), is exempt from sales and use tax. Examples of such items are: paper stock, including newsprint; printer’s ink; and dry spray powder that is used to speed the drying of ink on printed matter. Publishers whose business activity is limited to the tax exempt distribution of periodicals, as provided in subsection (3), are not required to register with the Department as a dealer and may issue an exemption certificate, as provided in Fl. Admin. Code R. 12A-1.038, to the selling dealer to purchase such supplies and materials tax exempt. Dealers registered with the Department may present a copy of the dealer’s Annual Resale Certificate (Form DR-13) to the selling dealer to purchase such supplies and materials tax exempt.
(b) If a newspaper company employs another company or a printer to print its newspapers, the charge for printing is exempt when the purchaser presents a copy of the purchaser’s Annual Resale Certificate (Form DR-13) to the selling printer or newspaper company. Publishers whose business activity is limited to the tax exempt distribution of periodicals, as provided in subsection (3), may issue an exemption certificate, as provided in Fl. Admin. Code R. 12A-1.038, stating that the publication is exempt from tax pursuant to Section 212.08(7)(w), F.S., to the selling printer or publishing company.
(c) The purchase of items and materials used one time only for packaging periodicals, without which the delivery of the periodical would be impractical, or for the convenience of the customer, is exempt. Examples of such packaging materials are: boxes, cans, mailing and wrapping paper, wax and plastic bags, twine, wire and steel band material, and shipping tags.
(d) The charge for information services, such as news research services, including photo and news services, furnished to newspapers is exempt. The charge for press clipping services is exempt. See Fl. Admin. Code R. 12A-1.062
(e) The purchase of expendable materials, supplies, and other items that do not become a component part of, or accompany, the periodical for sale is subject to tax. Examples of such items are: rosin paste, gummed paste, flash bulbs, felt packing, art supplies, photographs, engravings, cuts, mats, mat services, chemicals and additives used for processing printed materials, chemicals used as cleaning agents or detergents, blankets, rollers, matrix, wire machines, and other production and packaging equipment.
(f) The purchase, production, or creation of film, photographic paper, dyes used for embossing and engraving, artwork, typography, lithographic plates, and negatives used in producing periodicals for sale is subject to tax. When such items are manufactured, produced, compounded, processed, fabricated, or created by the publisher for his or her own use, the publisher shall pay tax on the cost price of such items. See Fl. Admin. Code R. 12A-1.043 For the tax exemption provided for the purchase, production, or creation of these items to printers whose business is classified in the Standard Industrial Classification (SIC) Manual, 1987, as published by the Office of Management and Budget, Executive Office of the President, as SIC Industry Numbers 275, 276, 277, 278, or 279, see Fl. Admin. Code R. 12A-1.027
(g) The use by the publisher of copies of a periodical that does not meet the exemption requirements provided in subsection (3), through consumption of copies for use by the publisher or copies that are to be given away by the publisher, is taxable at the usual retail price thereof, if any, or at the cost price, as defined in Florida Statutes § 212.06(16)
Rulemaking Authority 212.07(1)(b), 212.18(2), 213.06(1) FS. Law Implemented 212.02(4), 212.05(1)(a), (b), (g), 212.0515(1), (2), 212.06(1)(a), (b), (16), 212.07(1), (2), 212.08(7)(o), (v), (w), (yy), (ccc), 212.18(3)(a) FS. History-New 10-7-68, Amended 1-7-70, 6-16-72, Formerly 12A-1.08, Amended 4-22-86, 12-13-88, 1-30-91, 3-17-94, 3-20-96, 6-19-01, 1-28-08.