If you are a medical equipment manufacturer, distributor or retailer with Missouri activity, you should be aware of a recent Letter Ruling which may provide tax refund opportunities. The Missouri Department of Revenue recently issued Letter Ruling (LR 7843- 7/19/17) which provides some excellent sales and use tax guidance related to medical equipment that is used by disabled individuals. Specifically, it goes into great detail about what type of items are exempt from sales and use tax and under what conditions.
After speaking with some of my contacts in the state, it appears that some of the exemptions listed in this ruling are not widely known in the industry and therefore refund opportunities may exist.
I won’t go into all of the items that are called out in the ruling as being exempt but some of the more common items include: oxygen cart with wheels, manual wheelchairs and power scooters. The items that are less common and are apparently less known in the industry as being exempt include: portable wheelchair ramps, folding walkers, and forearm crutches.
Please keep in mind that there are specific conditions that qualify these exemptions for specific taxpayers and not all sales of the forgoing items will be exempt in all cases.
Questions? If you are a medical equipment manufacturer, distributor or retailer - feel free to contact me if you would like some specific guidance on the matter. If however you are a consumer with questions regarding this subject - please contact your Department of Revenue for assistance.
Other recent “Medical Industry Tax” posts by James R. Dumler:
- Taxability of Orthotic Devices in California
- New Medical Equipment Tax Refund Opportunities in Missouri
- California Medical Marijuana Retailers: Tax Update & Exemption Rules
- Sales & Use Tax Refund Opportunities: Durable Medical Equipment
- Medical Equipment Tax Change Opens Door: CA Regulation 1591