Missouri – Sales of Embolization Products areTaxable

SALT Report 1710 – The Missouri Department of Revenue issued a Letter Ruling regarding a Taxpayer that manufactures and sells embolization products.  The Taxpayer’s embolization device is a pre-formed product that is inserted through a catheter into hyper-vascular tumors and arteriovenous malformations.  Once inserted into the affected area, the device blocks the flow of blood by swelling to a specific swell size.

Missouri law provides an exemption for prosthetic or orthopedic devices.  These devices must be used to “replace all or part of the function of a permanently inoperative or malfunctioning internal body organ” or they must be a “rigid or semi-rigid leg, arm, back or neck brace that is directly used for the purpose of supporting a weak or deformed body member or restricting or eliminating motion in a diseased or injured part of the body.”  Missouri Code of State Regulations 12 CSR 10-110.013(2)(A) and 12 CSR 10-110-013(2)(D).

The Department determined that the Taxpayer’ embolization product is neither a prosthetic device nor an orthopedic device for the following reasons:

  • It is used to treat medical conditions by blocking the blood flow within a vein or artery
  • It does not replace the function of a permanently inoperative or malfunctioning internal body organ
  • It is not a rigid or semi-rigid casting material used to support a body member, and
  • It does not restrict or eliminate motion in a diseased or injured part of the body

Based on the above facts, the Department ruled that sales of the Taxpayer’s embolization product are subject to sales and use tax.

For Further Information:

Missouri Department of Revenue – Letter Ruling  #LR 7142