South Dakota: Taxable and Exempt Health Services
- Jun 10, 2014 | Gail Cole
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.
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;
- 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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