Sales Tax Articles
Sales Tax State Activity Update - September 2007
Missouri Puts Their Best Foot Forward with Shoe and Insert Exemption
When prescribed by a physician, orthopedic shoes and shoe inserts are exempt from Missouri Sales and Use Tax.
A Wisconsin-based vendor requested a ruling from the Director of Revenue regarding its sales of Medicare conforming shoes and shoe inserts for diabetic patients with correlated foot problems.
Once a patient is identified by a physician as having foot problems stemming from diabetes, a separate medical professional custom fits the patient with the special orthopedic shoes and shoe inserts.
Missouri Revised Statutes § 144.030.2(18) exempt, in pertinent part, all sales of insulin and prosthetic or orthopedic devices as defined on January 1, 1980, by the federal Medicare program pursuant to Title XVIII of the Social Security Act of 1965, including the items specified in Section 1862(a)(12) of that act.
Since 1987, "extra-depth shoes with inserts or custom molded shoes with inserts for an individual with diabetes" has been included within the definition of "medical or other health services" covered by Medicare under the above Act, subject to certain prescription requirements.
Based on this 1987 amendment to the Social Security Act of 1965, it is clear that the vendor's shoes and shoes inserts prescribed and provided by a physician to address the medical needs of a diabetic patient qualify for exempt status per Missouri Revised Statutes § 144.030.2(18).
The full text can be viewed on the Missouri Department of Revenue Website.
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