Sales Tax State Activity Update - February 2004

Retrieval of Medical Records Exempt in Massachusetts

Fees charged by a company for retrieval of a patient’s medical records and processed according to its customers needs were exempt from sales and use tax. Some of the customers consisted of attorneys, insurance companies, government entities, patient’s physicians and hospitals. The reports are delivered either electronically or by hardcopy.

A sale at retail “does not include the furnishing of information which is personal or individual in nature and which is not or may not be substantially incorporated into reports furnished to other persons” G.L.c.64H, 1.

The Department of Revenue determined the above reports fit into the latter definition and were exempt.

Also charges for electronically delivered reports would be exempt Under 830 CMR 64H.1.3(12).

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