Free Distribution Newspapers (Rule 127)

Sections 63-3622, 63-3622T, Idaho Code 01. Newspaper Format. The term “newspaper format” means a publication bearing a title, issue d regularly at stated intervals of at least twelve (12) times a year, and formed of printed paper sheets without binding. Catalogs, advertising fliers, travel brochures, employee newsletters, theater programs, telephone directories , restaurant guides, posters, and similar publications are not publications in newspaper format. (3-31-22) 02. Purchase or Use of Tangible Personal Property. The purchase or use of tangible persona l property used to produce newspapers distributed to the public free of charge is exempt from sales or use taxes if th e requirements of Section 63-3622T, Idaho Code are met. (3-31-22) 03. Qualifying for Exemption. To qualify for the exemption at least ten percent (10%) of the tota l newspaper, computed on an average annual column inch basis, need to be devoted to the publication of non-incom e producing informative material. Advertisements promoting the free distribution newspaper itself do not qualify a s non-income producing informative material. Neither do logos, column headings, mastheads, borders, etc. (3-31-22)