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 condition is that the service must be sold at or below the cap amount.

The cap amount for sales or uses of electronic news services for the period of June 1, 2025, through May 31, 2026, remains at $4,545.

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 during the first week of January for the three newspapers described above. The cap amount then applies to the succeeding twelve-month period beginning June 1 and ending 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