As part of a scheduled State Sales Tax audit, the auditor brought to our attention that potentially some of our customers could receive sales tax exemption from the Commonwealth of Pennsylvania from the purchase of printed materials qualifying as direct mail advertising materials through Title 61 PA Code Reg. §31.29(b)(2)(ii). The code is defined as follows:
Title 61 PA Code Reg. §31.29 defines direct mail advertising literature or materials as tangible personal property which is intended to promote business interest, good will, or engage the attention or interest of the prospective purchaser to whom it is distributed directly through the United States Postal Service. Such property includes but is not limited to printed matter, brochures, price lists, matchbooks, playing cards, calendars, pens, and similar materials, including envelopes and address labels used in sending the literature and materials through the United States Postal Service. The term does not include advertising literature or materials that are distributed in a manner other than by the United States Postal Service.
If you are unsure if your direct mail advertising literature qualifies for a sales tax exemption, we encourage you to contact the Pennsylvania Department of Revenues Tax Payers Service and Information Center at 717-787-1064 and press #2 for a representative for further clarification.
If your direct mail advertising piece qualifies for the exemption under Title 61 PA Code Reg. §31.29 your organization is required to complete the exemption certificate. Please check box # 7 and explain that the printed matter purchased qualifies as direct mail advertising as defined under 61 PA Code Reg. § 32.1.
Please note, if you place an order that does not qualify as direct mail advertising you will be billed the appropriate state sales tax.
If you have made previous purchases of items that would qualify as direct mail advertising from us or other vendors, the Commonwealth of Pennsylvania should refund the taxes paid through the tax appeal process. The Pennsylvania Department of Revenue Board of Appeals has a website with additional information. If you need assistance in filing for the refund of the taxes paid, please consult with your tax practitioner or we can put you in contact with our sales tax practitioner.
We encourage your organization to utilize this potential tax saving opportunity.