Ezel / Tax Rulings / TX
TX 8702L0794B12 Sales and/or Use Tax (State,Local,MTA) 1987-02-03

How did Texas tax hand-held electrocardiographic monitors and the related signal analysis and physician reports?

Short answer: Sales, leases, and rentals of the hand-held monitors were taxable. Analysis of patient signals and the resulting reports to physicians were nontaxable medical services.

Apply this to your situation

This page answers the general question as of 1987. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1987
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This 1987 Texas Comptroller letter addresses hand-held electrocardiographic monitors and related signal-analysis reports. The broader STAR caption mentions paper and pads that the operative body does not decide. Medical-equipment, device, monitoring, telehealth, reporting, exemption, and local-tax rules may have changed. STAR documents may no longer represent current policy even when not marked superseded. Identities are redacted. This summary is informational only and is not legal or tax advice.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page) is the authoritative source for any reliance.

Plain-English summary

The Texas Comptroller said the sale, lease, or rental of hand-held electrocardiographic monitors was taxable.

The analysis of patient signals and the reports then provided to physicians were nontaxable medical services. The operative body did not separately address monitor paper or pads listed in STAR's broader caption.

What this means for you

The tangible monitoring equipment and the professional analysis received different treatment. Charging for a nontaxable medical service did not make the monitor sale or rental nontaxable under this letter.

Common questions

Were hand-held monitors taxable? Yes, whether sold, leased, or rented.

Was analysis of the patient signals taxable? No.

Were reports to physicians taxable? No.

Did the letter decide paper or pad purchases? No.

Citations and references

  • Comptroller Rule 3.284 — drugs, medicines, medical equipment, and devices.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller February 3, 1987

Dear ***:

Thank you for your letter of January 26, 1987 concerning the taxability
of equipment used to provide electrocardiographic monitoring.

The sale, lease or rental of hand-held monitors is taxable. The analy-
sis of the signals from the patient and the subsequent reports made to
physicians are nontaxable medical services.

Rule 3.284, Drugs, Medicines, Medical Equipment and Devices is enclosed
for your reference.

This opinion is based on the facts presented. If there are additional or
different facts, the opinion may change.

If you have any questions or need more information, please call me at
1-800-252-5555 toll free from anywhere in Texas. The regular number is
512/463-4600. You may write me at the Tax Administration Division.

Sincerely,
Julie Pesl
Tax Policy Section
Tax Administration Division

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