Idaho Administrative Code
Title IDAPA 35 - Tax Commission, State
Rule 35.01.02 - IDAHO SALES AND USE TAX ADMINISTRATIVE RULES
Section 35.01.02.033 - SALES OF NEWSPAPERS AND MAGAZINES

01. Subscriptions. Subscriptions to newspapers and magazines are sales of tangible personal property. The sale will be taxed if the single copy price of each newspaper or magazine purchased by the subscriber exceeds eleven cents ($0.11). The single copy price is to be computed on an annual basis regardless of whether the subscription is paid weekly, monthly or on some other periodic basis.

02. Single Copy Price. The single copy price is to be computed according to the following formula. (Published subscription price) x (Number of subscription periods in one (1) year) / (Number of issues a subscriber receives in one (1) year) = Single Copy Price. If the single copy price as computed exceeds eleven ($0.11) cents, the subscription is taxable. If the single copy price is eleven cents ($0.11) or less, the subscription price is not taxable.

03. Computation of Tax. If the subscription price is taxable, the tax is to be computed on the subscription price according to the schedule contained in Section 63-3619, Idaho Code.

04. Subscription Price. As used in this rule, the terms published subscription price and subscription price mean the total amount charged for purchase and delivery of the newspaper and magazine, except that separately stated postage is to be excluded from the taxable subscription price. It is acceptable business practice for publishers to establish a price for their newspapers as separate weekday-only and Sunday-only issues. The provisions of this rule will be in effect in such cases. When the price is posted as a combined weekday-Sunday price, sales tax will be charged on the combined subscription price.

05. Individual Sales. Individual or separate sales of newspapers or magazines, except as provided in Subsection 033.06 of this rule for a single price of eleven cents ($0.11) or less are not taxable. Individual or separate sales of newspapers or magazines for a single price exceeding eleven cents ($0.11) are taxable according to the schedule provided in Section 63-3619, Idaho Code. Separate or individual sales of newspapers or magazines together with taxable retail sales or other taxable tangible personal property is taxable if the total sales price of all taxable property included in the sale exceeds eleven cents ($0.11).

06. Vending Machine Sales. Sales of newspapers or magazines through a vending machine are governed by the provisions of Section 63-3613, Idaho Code, and Rule 058 of these rules, except when the cost of the newspaper is greater than the sales price, tax will be computed on the retail sales price.

07. Independent Retailer Sales. The sale of newspapers by a publisher to an independent retailer will be tax exempt only if the retailer provides the publisher with a properly executed resale certificate. See Rule 128 of these rules. The incidence of sales tax then falls upon the independent retailer who has a seller's permit and will be responsible for collecting and remitting the sales tax on all newspapers thus purchased and resold.

08. Carriers Less Than Sixteen Years Old. If the carrier is less than sixteen (16) years old, the publisher or other seller's permit holder from whom he or she obtains the newspapers will be responsible for the collection of sales tax and remitting such taxes to the Commission.

09. Product Consumed by the Publisher. Eight-tenths of one percent (0.8%) of net press run of newspapers or magazines, will be taxed as product consumed by the publisher. Any percentage figure below eight-tenths of one percent (0.8%) is to be supported by accepted accounting methods generally used in the publishing industry. The value of the newspapers used is set at the retail price charged the consumer. Example: (Eight tenths of one percent (0.8%) of Daily Net Press Run) x (Single Copy Retail Price) x (Tax Rate) / Daily Net Press Run = Tax Per Copy.

10. Single Unit Price and Net Press Run. For purposes of the computation in Subsection 033.09 of this rule single copy price is the amount computed by the formula in Subsection 033.02 of this rule. Net press run is all readable, usable copies, including editorial copies, tearsheets, and archival copies, and excluding spoiled runs or printing waste.

11. Cross-Reference.