SALT Report 1251 – The Missouri Department of Revenue found that fees paid to a pharmacist by their customers for an assessment of their medical records and current medications is not subject to Missouri sales tax under §144.020.1, RSMo.
The pharmacist owns a chain of pharmacies within the state of Missouri. As part of the pharmacy’s services, they offer a review of their customer’s medical information to assess any medications the customer is currently taking and whether those medications are effective or a matter of concern for the customer. This service is available for a fee to all of the taxpayer’s customers.
Part of the service includes a meeting with a pharmacy technician who gathers certain medical information from the customer such as: prescriptions filled at the pharmacy, prescriptions filled at other pharmacies, any supplements the customer takes, the customer’s health conditions, and allergies. After taking this information, the pharmacy technician makes an appointment for the customer to consult with the pharmacist.
Before the consultation, the pharmacist reviews the customer’s information to determine medication appropriateness, unnecessary or ineffective prescribed medications, dosages that are too low or too high, the need for additional medication and cost effectiveness of the prescribed drugs. The pharmacist then meets with the customer and discusses the findings.
These services and the fee charged for the services are not subject to sales tax under section 144.020.1, RSMo. This regulation states that sales tax shall be imposed “upon all sellers for the privilege of engaging in the business of selling tangible personal property or rendering taxable service at retail in this state.” The Department ruled that reviewing a customers medical records and medication history is not one of the enumerated taxable services under Section 144.020.1.
For Further Information: