Missouri – Taxability of Separately Stated Lab Fees

SALT Report 1995 – The Missouri Department of Revenue issued a letter ruling regarding the taxability of separately stated lab fees.  The Taxpayer in this case leases medical equipment to veterinarians in Missouri.  The equipment is used to analyze blood samples at the lessee’s office, but in more complicated cases, the lessee must send the blood samples to a laboratory for further analysis.

The Taxpayer would like to provide the lessee’s the option of paying the Taxpayer a monthly fee to cover the extra laboratory services. The Taxpayer would remit the monthly fee collected from the lessees to the laboratory that would perform the service. The Taxpayer requested guidance as to whether the monthly lab fee, if separately stated on its invoice to the lessee, is taxable.

In its ruling the Department noted that section 144.020, RSMo, imposes sales tax on the retail sale of tangible personal property and certain enumerated services. However, laboratory fees are not one of the enumerated taxable services. Therefore so long as the monthly lab fee is separately stated from the monthly rental fee on the invoice, it is not subject to sales tax.

For Further Information:

Missouri Department of Revenue – Letter Ruling LR 7136