Sales and use tax exemption for electronic news services

Electronic news services are exempt from sales and use taxes if they meet certain conditions. One of the conditions for the exemption is that the service must be sold at or below a cap amount.

The cap amount has increased to $4,441 for June 1, 2023, to May 31, 2024.

Additional information

How the cap amount is calculated

The cap amount is 300% of the annualized average daily newsstand price of the three newspapers with the largest total paid national daily circulation. The Tax Department determines the cap amount annually, based on the prices charged for the three newspapers as described above, during the first week of January of each year. The cap amount will then apply for the succeeding twelve-month period beginning on June 1 and ending on May 31.

Definition

Electronic news service is a service that:

is delivered, furnished, or provided to or accessed by the purchaser electronically or digitally, and
meets certain conditions.

For a list of the conditions, expanded definitions and information about the application of the exemption, see TSB-M-12(1)S, Sales and Use Tax Exemption for Electronic News Services and Electronic Periodicals.

Historical cap amounts

Historical cap amounts
Year	Cap amount
June 1, 2022 – May 31, 2023	$3,867
June 1, 2021 – May 31, 2022	$3,502
June 1, 2020 – May 31, 2021	$3,502
June 1, 2019 – May 31, 2020	$3,441

Resources

TSB-M-12(1)S, Sales and Use Tax Exemption for Electronic News Services and Electronic Periodicals.

Updated: May 10, 2023