Taxable Revenue

Some states, such as California, tax newspaper subscriptions based on the portion that has been delivered—that is, earned revenue.

For example, say the tax is 3% and a subscriber has a 6-month, 60.00 subscription. If taxes are reported three months later, about half of the subscription (or 30.00) will have been delivered. The total tax on the subscription will be 3% * 60, or 1.80, but since only half of it is earned, only 0.90 should be reported in this tax period.

This report lists tax amounts for earned revenue, and can be useful for tax reporting if a state’s tax is based on goods delivered. Earned revenue is calculated when the Unearned Revenue report is run with Update selected.

To report tax amounts based on earned revenue:

• Select Taxable Revenue from the Management menu to display the Taxable Revenue Report window.

  
• Click Add and enter the publication and date range for which the report should be run. Tax amounts will be calculated for earned revenue created in this date range.

• Click OK and then Continue to produce the report.

Example—Taxable Revenue Report