Categories: OLD Media Moves

WSJ sues Texas over sales tax

Dow Jones & Co., the parent of The Wall Street Journal, has sued the state of Texas after its comptroller ruled that it is not a newspaper and should pay state taxes.

Eriq Gardner of The Hollywood Reporter writes, “The Murdoch-owned newspaper believes it is being penalized by the state for charging more than $1.50 per paper for a newsstand sale.

“According to the Texas tax code, a ‘newspaper’ is defined as being printed on newsprint, distributed in short intervals, disseminating the news, with an average sale price that doesn’t exceed $1.50.

“In February, the state comptroller announced that some newspapers like the Wall Street Journal and the New York Times no longer meet the definition of a newspaper. ‘Because the average price of both publications is above $1.50, neither of these publications qualifies as a newspaper for Texas sales tax purposes,’ wrote the comptroller.

“The ramifcations of the ruling meant that it wouldn’t qualify for a ‘newspaper’ sales tax exemption afforded to other, smaller publications.”

Read more here.

Chris Roush

Chris Roush was the dean of the School of Communications at Quinnipiac University in Hamden, Connecticut. He was previously Walter E. Hussman Sr. Distinguished Professor in business journalism at UNC-Chapel Hill. He is a former business journalist for Bloomberg News, Businessweek, The Atlanta Journal-Constitution, The Tampa Tribune and the Sarasota Herald-Tribune. He is the author of the leading business reporting textbook "Show me the Money: Writing Business and Economics Stories for Mass Communication" and "Thinking Things Over," a biography of former Wall Street Journal editor Vermont Royster.