Tumor Treatment Therapy Device Taxable in Missouri

Friday, February 28th, 2014


The Missouri Department of Revenue ("Department") recently released a letter ruling holding that a tumor treatment device was subject to tax.

The taxpayer sold tumor treating therapy devices. The device transmitted electrical currents and targeted certain cells in the patient's body. This therapy used electric currents to prevent the mitosis and spread of the cells. The device consisted of electrodes to place on a patient's skin surrounding the tumor, an electric field generator, connection cables, a portable battery, power supply, and transducer arrays.

Missouri exempts sales of prosthetic devices. Prosthetic devices are devices that (1) replace all or part of the function of an internal body organ and (2) are medically required.

The Department held that the therapy device was not a prosthetic device. The device did not replace the function of an internal body organ: it merely attacked cells. The Department also ruled that the device was not a drug because federal law classified it as a device rather than a drug. The therapy device therefore did not qualify for the prosthetic device exemption or the prescription drug exemption. Sales of the therapy device were subject to tax.


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TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

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