Missouri’s Supreme Court Limits Manufacturing Exemption in Medical Context

Dec 2nd, 2019

Missouri's Supreme Court recently ruled that a medical office owed use tax on needles, cannulas, filters, catheters, and syringes purchased out-of-state. The items were used for injecting prescription drug compounds for the purpose of pain management.

Missouri exempts materials used or consumed in the manufacture or compounding of any product. The Court determined that the purchases did not qualify for this exemption because the injectable drug compounds were not marketable "products" with independent value. The value of the injectable drugs was tied to the medical and pain management services provided by the office. The drugs were not marketable to patients without such services. Since the drug compounds were not considered products, the exemption did not apply.

https://www.ttrus.com/missouri limits medical manufacturing exemption