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South Dakota: Taxable and Exempt Health Services

  • Jun 10, 2014 | Gail Cole

 Stethoscopes are subject to South Dakota sales tax.

The South Dakota Department of Revenue has published Tax Facts about health services, drugs and medical devices, explaining how South Dakota sales tax applies to these topics.

Health services

The following health services are exempt from sales tax in South Dakota:

  • Offices and clinics of licensed practitioners, such as general practice doctors, dentists, and physical therapists;
  • Offices and clinics of practitioners not required to have a license, such as acupuncturists, naturopaths, and psychotherapists;
  • Nursing and personal care facilities engaged in providing in-patient nursing and health-related personal care;
  • Hospitals;
  • Medical and dental laboratories;
  • Home health care services; and
  • Miscellaneous health and allied services.

Prescribed health services

Not all prescribed health services are exempt from sales tax in South Dakota. However, all of the services listed above (and more fully on the DOR website) are exempt when prescribed.

Lab testing and drug testing services

Medical laboratory services are subject to South Dakota sales tax unless they are:

  • Provided to a medical professional;
  • Provided to a patient as prescribed by a physician; or
  • Provided by a healthcare professional.

Drug testing services are taxable unless provided by a healthcare practitioner.

When sales tax applies to lab and drug testing, the rate is based on the location where the results are received. Use tax may also apply.

The Health Services, Drugs and Medical Devices Tax Facts further defines the taxability of ambulance services, drugs, durable medical equipment, and prosthetic devices. Detailed lists of exempt and taxable items are provided.

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photo credit: wenzday01 via photopin cc

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.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.