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.”
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