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Connecticut Ruling On Medical Records Taxability

  • Mar 29, 2012 | Susan McLain

A recent Connecticut Ruling (2012-2) determined medical records taxability when medical records are delivered to Requesters in a variety of format choices.

The rulings are:

  • Medical Records furnished to Requestors in hard copy are taxable sales of tangible personal property.
  • Medical Records furnished to Requestors by allowing access to an online data base are subject to sales and use taxes at 1% as computer and data processing services.
  • Medical Records furnished to Requestors by fax subject are not subject to sales and use taxes.
  • Medical Records furnished to Requestors by e-mailed copy are not subject to sales and use taxes.

However, “[s] ales of photocopies by professional service providers, such as law firms, medical offices, laboratories and other medical facilities, accounting firms, banks and insurance companies are not subject to sales and use taxes. This is so because in most cases, sales of photocopies by professional service providers are merely incidental to the primary services provided by such entities.”

The “…use of computers to transmit data must be found to be an essential aspect of the service, without which the service would not exist, or the service recipient would not have contracted with the Company,” in order to be taxed as a computer and data processing service.

A fax or e-mail containing copies of the records are “…neither tangible personal property nor any of the enumerated taxable services…” being sold, and so “…such sales are not taxable.”

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Susan McLain
Avalara Author Susan McLain
Susan McLain began her career as a technical writer in technology industries such as satellite networking and medical devices. Her skills encompass technical and marketing writing, usability engineering, verification and validation testing and protocol writing, requirements development, business analysis, technical illustration/graphic design and marketing. She has owned her own business providing service to small to medium sized business and in other positions, she has been in project management, documentation and marketing. She is currently the content specialist for Avalara helping to “make sales tax less taxing.”