Sales Tax Articles
Sales Tax State Activity Update - January 2006
Therapy H2O â€" Missouri Examines Prescribed Hydrotherapy Tubs
The Department of Revenue has issued a Letter Ruling to address the taxability of hydrotherapy tubs sold pursuant to written prescriptions of physicians. A Missouri business that sells hydrotherapy tubs sold this product to a customer who possessed a written prescription from a licensed physician.
Missouri Revised Statutes Section 144.030.2(18), in part, exempts all sales of drugs which may be legally dispensed by a licensed pharmacist only upon a lawful prescription of a practitioner licensed to administer those items. A hydrotherapy tub is not a drug, nor is a prescription required to purchase a hydrotherapy tub. Section 144.030.2(18) also provides an exemption for prosthetic and orthopedic devices, as those terms are defined by the Federal Medicare program pursuant to Title XVIII of the Social Security Act of 1965. However, a hydrotherapy tub does not qualify under either term.
As no sales tax exemption applies to the transaction in question, hydrotherapy tubs are subject to tax regardless of the of issuance of a prescription.
The full text of this Ruling can be viewed on the Missouri Department of Revenue website.
(Letter Ruling No. LR2574, Missouri Department of Revenue, 10/06/05)
Subscribe to CyberTax News and receive the latest indirect tax news, including rate changes, rule updates, compliance issues, and more, delivered directly to your email.
Call 800.355.3500 to Speak to a Sales Representative.
