Missouri: Embolization Products Subject to Sales Tax

On August 31, 2012, the Missouri Department of Revenue issued a letter ruling stating that embolization products are subject to sales tax. The ruling was in response to an inquiry by a business that manufactures and sells medical devices, including embolization products.  

While the state of Missouri allows an exemption for "[a]ll sales of ... prosthetic or orthopedic devices" (Section 144.030.2 (18) RSMo), LR 7142 clarifies that an "embolization product is neither a prosthetic device nor an orthopedic device…."

LR 7142 goes on to stipulate that "…an embolization product is subject to sales and use tax."

Letter rulings in Missouri are binding upon the Department of Revenue for three years from the date of issue and are "subject only to statutory changes by the General Assembly and to changes in the interpretation of law by courts or administrative tribunals."

Future interpretations of LR 7142 may oblige taxpayers to pay additional "taxes, interest and penalties." Anyone subject to sales and use taxes on embolization products is advised to keep apprised of interpretations of this letter ruling.