The New York Department of Taxation and Finance ("Department") determined that a company's charges to access health monitoring software were taxable. Its sales of blood pressure cuffs and transmitters for glucometers, however, were exempt.
The company charged a monthly fee for access to a software application on a tablet computer. Along with the software, the company sold blood pressure cuffs and transmitters for glucometers. This equipment sent health-related data to the software application.
The Department concluded that the blood pressure cuff and the transmitter for the glucometer were exempt because they were medical equipment used to treat or prevent disease. It determined that the software was taxable because a monthly charge for the right to access software via the web was a taxable sale of prewritten software.