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(EMPIRE NEWS NETWORK—ENN)— SACRAMENTO, CA— Assemblymember Marc Levine (D-Marin County) has introduced legislation to repeal the sales and use tax imposed on daily distributed print newspapers.
AB 1776, would apply the same tax free status to daily distributed print newspapers that is enjoyed by paid digital media news services. This bill would ensure that all forms of journalism, print and digital are treated equally in the marketplace.
“The Washington Post was correct when they said that ‘democracy dies in darkness,'” stated Assemblymember Levine. “At a time when the fundamental and constitutional rights of an open and free press are under attack at the highest level, we must not allow the voice of journalism to be silenced. Just as other essential consumer items are exempt from sales tax, AB 1776 affirms the essential role that a free and open press plays in the lives of Californians and all people in our democracy.”
California Sales and Use Tax law imposes a tax on the gross receipts from the sale, storage, use, or other consumption of tangible personal property. Currently, there are some piecemeal exemptions for certain newspapers and periodicals, yet the tax continues to be levied on daily and certain weekly print products.
“California’s sales tax continues to be applied to daily newspapers while virtually all media competitors for Californians’ time and attention are untaxed, such as radio, TV, Cable and all web-based media, whether content creators or aggregators,” said Thomas Newton, executive director of the California News Publishers Association. “As such, the tax is unfair, discriminatory and harms both newspapers’ ability to inform the public and the public’s right to be informed; interests protected by both the U.S. and California Constitutions. We applaud Assemblyman Marc Levine’s introduction of AB 1776 and look forward to working with him to advance his bill through the legislative process and to the governor’s desk.”
AB 1776 will be considered by the California State Assembly in the Spring of 2019.
