Free distribution newspaper; related transactions
Sec. 31. (a) As used in this section, "free distribution newspaper"
means any community newspaper, shopping paper, shoppers'
consumer paper, pennysaver, shopping guide, town crier, dollar
stretcher, or other similar publication which:
(1) is distributed to the public on a community-wide basis, free
of charge;
(2) is published at stated intervals of at least once a month;
(3) has continuity as to title and general nature of content from
issue to issue;
(4) does not constitute a book, either singly or when successive
issues are put together;
(5) contains advertisements from numerous unrelated
advertisers in each issue;
(6) contains news of general or community interest, community
notices, or editorial commentary by different authors, in each
issue; and
(7) is not owned by, or under the control of, the owners or
lessees of a shopping center, a merchant's association, or a
business that sells property or services (other than advertising)
whose advertisements for their sales of property or services
constitute the predominant advertising in the publication.
(b) The term "free distribution newspaper" does not include mail
order catalogs or other catalogs, advertising fliers, travel brochures,
house organs, theater programs, telephone directories, restaurant
guides, shopping center advertising sheets, and similar publications.
(c) Transactions involving manufacturing machinery, tools and
equipment, and other tangible personal property are exempt from the
state gross retail tax if the person acquiring that property acquires it
for his direct use, or for his direct consumption as a material to be
consumed, in the direct production or publication of a free
distribution newspaper, or for incorporation as a material part of a
free distribution newspaper published by that person.
(d) Transactions involving a sale of a free distribution newspaper,
or of printing services performed in publishing a free distribution
newspaper, are exempt from the state gross retail tax if the purchaser
is the publisher of the free distribution newspaper.
As added by Acts 1981, P.L.80, SEC.2.
Last modified: May 28, 2006