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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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S


515.0000 Service Enterprises Generally—Regulation 1501

Annotation 515.0015.800

(a) In General—Service Distinguished from Sale


515.0015.800 Service Enterprises Generally. Specialized equipment located in hospitals or doctor's offices is used to transmit certain medical data over telephone lines to an independent monitoring service. The service is performed under a doctor's prescription and covers heart arrhythmia/syncope monitoring. The transmittal results in an EKG strip which is then either faxed or mailed to the doctor.

Although the result of the monitoring service is presented to the doctors or hospitals on paper in the form of an EKG strip or facsimile thereof, it is clear that the true object of the contract is obtaining the monitoring service. The tangible personal property involved is transferred incidentally to the performance of this service. Charges for the monitoring service are not subject to sales or use taxes. 10/29/90.