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BTLG Table of Contents > Sales and Use Tax Annotations > N > 385.0000 Newspapers and Periodicals > Annotation 385.0290

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385.0000 Newspapers and Periodicals—Regulation 1590

Annotation 385.0290

(a) In General

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385.0290 Loose-Leaf Volume and Updates. For a fee, subscribers receive from taxpayer, who publishes and sells, an initial loose-leaf volume containing current material and a two-year subscription for quarterly updates. The charge for the initial loose-leaf volume is subject to tax. Subscriptions to the quarterly updates, if delivered by mail or common carrier, qualify as exempt periodicals under section 6362.7. The fee received by the taxpayer is for the transfer of two types of tangible personal property for one price. This price should be allocated between the fair retail selling price of each of the types of property. "Fair retail selling price" is defined as an amount sufficient to cover (1) the net labor costs of employees plus allowance for overhead and profit of not less than 100% of such labor cost; and (2) the cost of purchased items incorporated onto the tangible personal property that is sold. Regulation 1540(b)(1). 6/15/93.