Sales Tax Articles
Sales Tax State Activity Update - February 2007
Hernia Support Causes a "Meshy" Taxing Situation in Missouri
The Director of Revenue has issued a Letter Ruling to discuss the taxability of medical items purchased by licensed practitioners for use in practicing their profession.
This Ruling specifically involved the sale of a flexible fine wire netting commonly called "Mesh". This product is used by surgeons in the repair of hernias through its permanent implantation into the body to support the muscle tissue or wall of the abdominal cavity to prevent future hernias.
Missouri Revised Statutes ยง 144.010.1(10), in defining retail sales, provides that purchases made by duly licensed physicians, dentists, optometrists, and veterinarians used in the practice of their profession shall be deemed purchases for use or consumption and not for resale.
Missouri Code of State Regulations 10-103.395(3)(A) states that these practitioners must pay tax on the purchase of items used or consumed in the practice of their profession and lists examples such as medical instruments, diagnostic equipment, surgical tools, bandages, splints, x-ray film, and medical equipment. Thus, the "Mesh" product at issue in this Ruling is subject to sales or use tax.
The full text may be accessed on the Missouri Department of Revenue website.
(Missouri Department of Revenue, LR3520, 12/12/06)
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