Sales Tax Articles
Sales Tax State Activity Update - September 2006
Missouri Doesn't Sugar Coat the Taxability of Glucose Monitoring
The Missouri Department of Revenue has issued a Letter Ruling to discuss the taxability of glucose monitoring systems. The system is an inserted short-term sensor that wirelessly transmits blood glucose readings to a receiver, and is used in monitoring blood glucose levels in persons with diabetes.
Missouri Revised Statutes ยง144.030.2(18), in part, exempts drugs legally dispensed by a pharmacist upon a lawful prescription of a licensed practitioner.
Prosthetic or orthotic devices as defined in the federal Medicare program pursuant to Title XVIII of the Social Security Act of 1965 are also exempt per the above statute.
The glucose monitoring system cannot be classified as a drug. The system is not listed in the Medicare language as a qualified prosthetic or orthotic. The monitoring devices do not qualify for these or any other exemption. Therefore, glucose monitoring systems are subject to Missouri sales and use tax.
The full ruling may be accessed on the Missouri Department of Revenue Website.
(Missouri Department of Revenue, Letter Ruling LR3218, 8/7/06)
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