LR 8212
Taxability of Veterinary Services in School Program
September 30, 2022
Dear Applicant:
This is a letter ruling issued by the Director of Revenue under Section 536.021.10, RSMo, and Missouri Code of State Regulations 12 CSR 10-1.020, in response to your letter dated August 16, 2022.
The facts as presented in your letter ruling request are summarized as follows:
Applicant is a school district offering a new curriculum in their high school regarding veterinary medicine. The teacher will be a veterinarian and they will offer staff members' pets vaccinations/physicals for a fee. This fee will be rolled back into the program. The vet services will teach students how to administer vaccinations and perform physicals. They also wish to offer preventative medications such as heartworm and flea/tick. The veterinarian/teacher will order the medications and will sell them to the staff members. All profits from the sales of medication will be rolled back into the program.
ISSUE:
Are Applicant's sales of medication through the school's program subject to sales tax?
RESPONSE:
No. Applicant's sales of medication through the school's veterinary program are not subject to sales tax.
Section 144.020.1, RSMo, imposes a sales tax on retail sales of tangible personal property. Section 144.030.2(19), RSMo, exempts from sales tax "all sales made by or to all elementary and secondary schools operated at public expense in their educational functions and activities."
Applicant is a public school district providing primary and secondary education. The veterinary program being created for the high school curriculum is within Applicant's educational functions and activities. Since the profits of the veterinarian's sales of medication to staff members are rolled back into the program, these sales are a part of Applicant's educational functions and activities, and exempt from sales tax.
This letter ruling is binding upon the Department of Revenue with respect to the Applicant for three (3) years from the date of this letter and is subject only to statutory changes by the General Assembly and to changes in the interpretation of law by the courts or administrative tribunals. If a change occurs, the taxpayer who relies upon an outdated interpretation may be subject to additional taxes, interest and penalties, which may be imposed prospectively from the date of the change. For this reason, the interpretation set forth above should be reviewed on a regular basis. Please note that any change in or deviation from the facts as presented will render this ruling inapplicable.
Should additional information be needed, please contact Legal Counsel J. Ross Shelton, General Counsel's Office, Post Office Box 475, Jefferson City, Missouri 65105-0475, phone (573) 751-0961.
Sincerely,
Wayne Wallingford