Sales Tax State Activity Update - October 2004

Kansas Defines Taxability of Drugs Purchased by Veterinarians

The Kansas Department of Revenue has issued a Private Letter Ruling (PLR) to discuss the taxability of drugs purchased by a veterinarian for use in the practice of veterinary medicine.

K.S.A. 79-3606(p) provides an exemption for all sales of drugs dispensed pursuant to a prescription order by a licensed practitioner or a midlevel practitioner as defined by K.S.A. 65-1626. The Kansas Department of Revenue has concluded that sales of drugs to medical practitioners, including those that practice veterinary medicine, for use in the performance of professional services fall within the above exemption.

The PLR also points out that the exemption applies to the transaction in which drugs are purchased from a pharmacy pursuant to a prescription order from a licensed veterinarian.

View the ruling at: http://www.ksrevenue.org/pilrd.htm

(Kansas Department of Revenue, Private Letter Ruling P-2004-046, 8/18/04)

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