Revenue Ruling 01-02-6
Sales and Use Tax

This guidance document is advisory in nature but is binding on the Nebraska Department of Revenue (Department) until amended. A guidance document does not include internal procedural documents that only affect the internal operations of the Department and does not impose additional requirements or penalties on regulated parties or include confidential information or rules and regulations made in accordance with the Administrative Procedure Act. If you believe that this guidance document imposes additional requirements or penalties on regulated parties, you may request a review of the document.

This guidance document may change with updated information or added examples. The Department recommends you do not print this document. Instead, sign up for the subscription service at revenue.nebraska.gov to get updates on your topics of interest.

Sales and Use Tax - Magazine and Journal Subscriptions. EFFECTIVE OCTOBER 1, 2002, SALES OF MAGAZINE AND JOURNAL SUBSCRIPTIONS ARE SUBJECT TO TAX REGARDLESS OF THE FREQUENCY OF PUBLICATION.

Laws 2002, LB 1085, repealed the sales and use tax exemption for subscriptions for magazines and journals that are issued at average intervals not exceeding one month. Therefore, beginning October 1, 2002, all sales of magazine and journal subscriptions are subject to tax. Magazines and journals sold through means other than subscriptions remain taxable.

Sellers of magazine and journal subscriptions are retailers and are required to collect and remit the Nebraska and applicable local option (city) sales tax on all sales of magazine and journal subscriptions made on and after October 1, 2002.

Sellers meeting any of the criteria listed in Neb. Rev. Stat. §77-2702.06 must comply with the licensing and filing requirements for sales tax. Among these criteria are: maintaining a stock of goods, office, place of distribution or other place of business in this state; or having an agent, representative, or solicitor operating in Nebraska for the purpose of selling, delivering or taking orders for property. Sellers utilizing the solicitation or order-taking services of a telemarketing company located in Nebraska must be licensed and comply with the sales tax filing requirements.

A magazine is a collection of articles on topics of general or specific interest. A journal is a publication dealing with matters of current interest for a special group or the official records of a particular group, place or event.

Sales and Use Tax Regulations 1-012.02(B) and 1-055.01 are superseded by the provisions of Laws 2002, LB 1085.

APPROVED:
Mary Jane Egr
State Tax Commissioner

September 30, 2002