Idaho Newspaper Sales Tax Calculation Guidlines
By Bob C. Hall

 Here are some pointers, as you apply  Idaho Sales Tax Regulations 12,11 or
13,21 or 13,25   to your operation.  Following these pointers, you can refer
directly to the complete text of the three pertinent Sales Tax Regulations
discussed here.
 The basic value figure that you  must keep on hand at all times is the
Published Subscription Price. In sales tax terms, this means your ANNUAL
subscription charge, LESS your  cost for postage and/or LESS any alternate
 contracted delivery charges.
  In both cases, your published TOTAL PRICE to subscribers should state  how
much of your annual subscription price covers the tangible newspaper product
itself, plus how much is a separate delivery charge to cover postal delivery
or to pay for contract delivery i.e carriers, motor route dump services etc.
If the charges are clearly stated and kept on your records that way, you can
deduct postal and other delivery service costs from the total annualized
subscription price for sales tax purposes.  NOTE: Any deduction of a claimed
"separate delivery service cost" must be validated by an Independent
Contractor ststaus record for the firm or person provising the service. This
includes a clear contract with the firm or person for such service and  1099
form obtained from the provider of the service. Such records are not
necessary if you are only deducting postage charged for service by he U.S.
Post Office. In the latter case, clear records of all postal service charges
are required to be shown, at audit.

SAMPLE ANNUAL SUBSCRIPTION  PRICE CONTRACT STATEMENT
 52 Issues @ 25c = $13.00
 52 Postal Deliveries @ 10c = $5.20
 TOTAL SUBSCRIBER CHARGE   $18.20

 If this is clearly stated so that subscribers realize that they can come to
the office, pick up all papers during the contract period and thus avoid the
postal or oher carrier delivery charge , you pay sales tax only on the $13
per year "tangible product" price.
 To figure what you owe on single copy sales over your own office counter,
diivide that annual $13 price (use your own actual price) by the number of
issues per year to get a single copy sales tax value.

Tax On Internal Use Copies Not Sold
 Another  sales tax factor that you must track in bookkeeping is the 5% sales
tax rate on copies not sold at retail, but used for "internal
consumption"-tear sheets, editorial proofreading etc.  To make bookkeeping
and collection of this tax easy, the Tax Commission has agreed that all
newspapers could assume an estimated industry "waste copy" average of .008 of
their net press run as used for intrnal office use.
 You use the same "per copy value" figure as the one you calculated as in the
subscriber copy example. Let's say, after deduction for postage or orher
delivery charges, your per copy taxable price is 20c. In this example, you
would multiply .008 x Net Press Run (all copies off the press intended for
sale) and then multiply the resulting number of copies times 20c.  Apply the
5% tax to that value and that is what you remit for internal use copies. 

TAX ON VENDING MACHINE SALES
 The third factor is copies sold at vending machines IF YOU OWN AND OPERATE
THE MACHINES. First, you get a Seller's Permit from the Tax Commission, as a
vending operator. Then, you value all newspapers placed in the machines at
117% of the wholesale  cost  of newspapers loaded in the machine.  That would
be he cost you charge your grocer for newspapers that they resell.  In other
words, the 5% tax is applied to the wholesale cost, plus an assumed 17%
markup, regardless of the actual price required to take a newspaper from the
machine.
 Obviously, if your grocer or other retail store reseller has a reseller's
permit and is buying from you wholesale, you don't collect and remit sales
tax on those copies..they do.


THREE PERTINENT SALES TAX REGULATIONS FOLLOW:
REGULATION 12,11. Sales of Newspapers and Magazines.-[Amended 07/13/92]
 a. 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 shall be computed on an annual basis regardless of whether
the subscription is paid weekly, monthly or on some other periodic basis.
 b. The single copy price shall be computed according to the following
formula:

Multiply Published subscription Price  X  Number of subscription periods in
one year. 
              Divide the product by the Number of issues a subscriber
receives In one year 

If the single copy price as computed above exceeds eleven cents, the
subscription is taxable.  If the single copy price is eleven cents or less,
the subscription price is not taxable.
 c. If the subscription price is taxable, the tax shall be computed on the
subscription price according to the schedule contained in x63-3619, Idaho
Code. (Currently 5% tax rate)
 d. As used in this regulation, 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 or
delivery charges qualifying for exclusion under Regulation 13.25. shall be
excluded from the subscription price subject to tax.
 e. 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 regulation 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.
 f. Individual or separate sales of newspapers or magazines, except as
provided in section g., below, for a single price of eleven cents or less are
not taxable.  Individual or separate sales of newspapers or magazines for a
single price exceeding eleven cents are subject to tax according to the
schedule provided in Idaho Code x63-3619.  Separate or individual sales of
newspapers or magazines together with retail sales or other tangible personal
property subject to tax shall be taxable if the total sales price of all
taxable property included in the sale exceeds eleven cents.
 g. Sales of newspapers or magazines through a vending machine are governed
by the provisions of Idaho Code x63-3613 and Sales Tax Regulation 13,21.
 h. 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 Regulation 20,4.  The incidence of sales
tax then falls upon the independent retailer who must have a registered
seller's permit number and will  be responsible for collecting,  accounting
for and remitting the sales tax on all newspapers thus purchased and resold.
 i. If the carrier is less than 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 State Tax
Commission.
 j. 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%) must be supported
by accepted accounting methods generally used in the publishing industry.
 The value of the newspapers used shall be set at the retail price charged
the consumer.
EXAMPLE:
Multiply 0.8% of Net Press Run x Single Copy Retail Price.  Multiply the
product times the current Sales Tax Rate.  Divide the result by your daily or
weekly Net Press Run
 k. Definitions.-For purposes of the computation in section j., single copy
price shall be the amount computed by the formula in section b. of this
regulation.  Net press run shall mean all readable, usable copies, including
editorial copies, tearsheets, and archival copies, and not including spoiled
runs or printing waste.
 l. Those free distribution publications, such as shoppers or flyers which,
because they achieve no retail value as defined in this regulation and meet
the exemption laws due to a 10% editorial content, will not be subject to
sales tax.


REGULATION 13,21. Sales Through Vending Machines.-[Amended 09/24/90]

 a. The sale of tangible person~ property through a vending machine Is a
taxable transaction.  The term "vending machine" shall mean any mechanical
device which, without the assistance of a human cashier, dispenses tangible
personal property to a purchaser who deposits cash in the device.

 b. Effective July 1, 1986, sales of items through a vending machine for
amounts from $0.12 through $1.00 are taxable at 117% of the vendor's
acquisition cost of the items.  Items sold for $0.11 or less are not taxable.
 Items sold for $1.01 or more are taxable on the retail sales price.
 c. Vendors who sell tangible personal property through a vending machine are
required to obtain a seller's permit. Only one seller's permit is required;
however, each vending machine operated by the vendor must conspicuously
display the vendor's name, address, and seller's permit number. When a number
of vending machines are placed in a single location, the owner's name,
address, and seller's permit number need be displayed only once.
 d. Sales and use taxes due by the vending machine operator shall be computed
as shown in the following examples:
 EXAMPLE 1:  Corporation A's business activity consisting only of sales
through vending machines in various locations in the state of Idaho.  All of
the items sold in the vending machines are sold for a unit price of $0.12 or
more but none are sold for a price greater than $1.00.  During the month of
July, 1989, Corporation A's gross receipts from the vending machine sales
were $10,000. Corporation A purchased the items sold during that one-month
period for $8,000. The company made no nontaxable or exempt sales.
 Corporation A should file a sales and use tax return for the month of July,
1989, computing are reporting its taxable sales as follows:  (Numbers
correspond to line numbers on the return.)
 1. Total sales   $10,000
 2. Less nontaxable sales* 640
 3. Net taxable sales  9,360
 * Line 2 computed as follows:
 8,000 x 117% - 9.360
 10,000 - 9,360 = 640

 EXAMPLE 2:  During the month of July, 1989, Corporation B had total Idaho
sales in the amount of $10,000.  In addition to sales through vending
machines, the corporation made over-the-counter sales, all of which were
taxable, in the amount of $2,000.   The remaining $8,000 constituted sales
through vending machines, of which $1,000 was for items with a unit retail
price of over $1.00. The other $7,000 were sales of Items through vending
machines with a unit retail price of $0.50 each.   The items sold during the
month for $0.50 each were purchased by Corporation B for $5,000. Corporation
B should file a sales and use tax return for the month, computing and
reporting its taxable sales as follows:
 1. Total sales   $10,000
 2. Less nontaxable sales* 1,150
 3. Net taxable sales  8,850
 * Line 2 computed as follows:
 7,000 - (117% of 5,000) =1,150

 Note, that If a vendor sells some items for more than $1.00, no special
computation is required for those items if they are included on line 1 (total
sales).\

REGULATION 13,25. Transportation and Freight Charges.-[Amended 12/13/91]
 a.  Whether or not transportation charges are separately stated, the sales
price includes any charges made for transporting the commodity prior to the
time of sale to the buyer. Charges for transportation subsequent to the sale
and occurring at a time when the goods sold lie completely within the control
of the buyer are not included as a part of the sales price.
 b.  For the purpose of determining the time of sale, the sale will be deemed
to have occurred at the time title to the property passes from the seller to
the buyer.  For the purposes of determining when title passes from the seller
to the buyer, the rules of the Uniform Commercial Code (Idaho Code xx28-2-401
or 28-2-327) shall apply.

 c.  However, notwithstanding any of the above, If transportation of the
commodity is by the seller to the final purchaser as a separately contracted
service to the final purchaser, then these transportation charges are not
subject to the sales tax, if separately identified, regardless of when title
passes.

 d.  Regardless of other provisions of this regulation, transportation
charges which are not separately stated are included in the sales price
subject to tax.

 EXAMPLE 1: A purchaser places an order with a retailer for building
materials.  The retailer delivers the goods to the purchaser by means' of the
retailer's delivery van.  A separately stated charge for transportation of
the goods is billed to the purchaser.  As the seller provided the
transportation of the goods to the final purchaser, the charge for the
transportation Is not subject to the sales tax as provided by section c. of
this regulation, regardless of where or when title passes.
 EXAMPLE 2: A purchaser places an order with a retailer for building
materials to be shipped from the retailer's store to the purchaser by means
of a common carrier.   The terms of shipment are "freight on board" (f.o.b.)
destination (title to the goods passes to the purchaser at destination).  The
transportation is not provided by the seller, it Is instead provided by
common carrier.  Therefore, the provisions of section c. of this regulation
do not apply.  As title passes to the purchaser at destination, the
transportation has occurred prior to the sale. The seller must charge sales
tax on the entire sales price including the transportation charges.
 EXAMPLE 3: Using the circumstances of Example 2 with the exception that the
terms of shipment are f.o.b. origin (title passes to the purchaser at
origin).  The retailer separately states the freight charges on the billing
to the purchaser. The charge for the transportation Is not subject to the
sales tax as the transportation occurred after the sale at a time when the
goods were in the control of the buyer.
 EXAMPLE 4: A purchaser orders a machine part from a retailer.   The retailer
does not have the part in inventory and orders the part from the manufacturer
who ships the part to the retailer by common carrier. The purchaser picks up
the part at the retailer's location.  The retailer separately bills the
transportation charge to the purchaser.  The retailer must charge sales tax
on the entire sales price including the transportation charge.   The Uniform
Commercial Code provides that title to goods cannot pass under a contract for
sale prior to their identification to the contract, and that unless otherwise
explicitly agreed, title passes to the buyer at the time and place at which
the seller completes his performance with reference to physical delivery of
the goods.  In this example, the goods must be ordered from the manufacturer
and therefore, have not been identified to the contract.  Title cannot be
deemed to have passed until  the seller delivers the goods to the customer.
  The transportation has occurred prior to the sale and must be included in
the measure of the taxable sale to the purchaser.
 EXAMPLE 5: Using the same circumstances as in Example 4, with the exception
that the manufacturer ships the goods by common carrier directly to the
purchaser and bills the seller.  As in the previous example, as the seller
must order the goods from the manufacturer, they have not been identified to
the contract. The transportation has occurred prior to the sale and must be
included in the measure of the taxable sale when billed to the seller to the
purchaser.