Periodicals, Magazines and Other Printed Matter (Rescinded June 11, 1990)

AUTHORITY: section 144.270, RSMo 1986. Previously filed as rule No. 72 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 010-50 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Amended: Filed Jan. 28, 1983, effective May 12, 1983. Rescinded: Filed Feb. 27, 1990, effective June 11, 1990. Daily Record Co., d/b/a Mid-America Printing Company v. Ray James, 629 SW2d 348 (Mo. banc 1982). This opinion by Judge Seiler defines the term “newspaper”. It cites without comment Department of Revenue’s definition of “newspaper” which is contained in 12 CSR 10-3.112. It held that an advertising supplement which is printed solely to be inserted into and distributed by a newspaper is an integral part of that newspaper and is entitled to the same exemption from sales tax as is the remainder of newspaper. James v. Mars Enders, Inc., 629 SW2d 331 (Mo. banc 1982). Printing costs of advertising supplements, which were printed to be distributed as part of newspaper and which were, in fact, distributed as part of newspaper, were not sales of tangible personal property or services and were thus not subject to sales tax; newsprint used to print such supplements was “newsprint used in newspaper” and was exempt from taxation. Dolgin’s Incorporated v. Director of Revenue, A.H.C. No. RS-790322 (1982). Dolgin’s advertised its products by using professionally printed advertising supplements in newspapers within this state. They also distributed the same advertising supplement direct to Missouri consumers by mail. These direct mail advertising supplements were held taxable under section 144.610.1, RSMo 1978 because Dolgin’s “used” them within this state. The interruption of transportation of supplements at distribution points in Missouri, prior to their being placed in the U.S. mail, constitutes a taxable moment. The newsprint exemption from sales tax does not apply since these supplements did not become “integral parts of newspapers.”