Does a medical-record retrieval company have to charge Missouri sales tax when it electronically delivers copies of medical records to a law firm?

Plain-English summary

The Missouri Department of Revenue ruled that electronic delivery of medical records is not subject to Missouri sales tax. The Applicant, a plaintiff's law firm that represents clients who have suffered serious injuries, routinely requests medical records from healthcare providers and other entities to properly serve its clients. Those entities often outsource the actual record retrieval to a third-party company (referred to as "Retriever"), which charges sales tax on the electronic delivery of the records and told the Applicant that Missouri required it to collect that tax.

The Department disagreed. Missouri's sales tax statute, Section 144.020.1(1), RSMo, only taxes sellers for engaging in the business of selling tangible personal property or rendering a taxable service at retail. Electronically stored information -- including electronic documents like scanned or digital medical records -- is not tangible personal property because it has no physical form. Since Missouri does not tax the sale of non-tangible property, and delivering records electronically doesn't turn them into a taxable service either, the Department concluded that Retriever's electronic delivery of medical documents to the Applicant is not subject to Missouri sales tax.

This is a narrow, fact-specific correction of a vendor's tax practice: a records-retrieval company had been charging sales tax based on a mistaken belief that Missouri law required it. The ruling confirms that belief was wrong, at least on these facts.

What this means for you

Law firms and other requesters of electronic records

If a vendor charges you sales tax on medical records (or other documents) delivered electronically, that charge is not required by Missouri law, per this ruling's reasoning. You may want to ask the vendor to justify the charge or stop charging it, since electronic documents are not tangible personal property under Missouri's sales tax statute.

Record-retrieval and document-delivery companies

If your business delivers documents electronically -- medical records, court records, or similar -- charging Missouri sales tax on that delivery is not supported by this ruling's reasoning. Tax treatment could differ if you also deliver physical/paper copies (which are tangible personal property) or if you bundle the delivery with some other taxable service, since this ruling only addresses purely electronic delivery.

Accountants and tax professionals

The ruling rests on a single, well-established principle: Missouri sales tax under Section 144.020.1(1), RSMo, applies only to tangible personal property or taxable services, and electronically stored information lacks the physical form needed to qualify as tangible personal property. This tracks the broader trend across states distinguishing taxable tangible goods from non-taxable digital information, though outcomes vary state to state and can depend on specific statutory definitions.

Common questions

Q: Does this mean all electronic documents are exempt from Missouri sales tax?
A: This ruling addresses electronic delivery of medical records specifically, reasoning that electronic documents generally are not tangible personal property. The same logic would likely extend to other purely electronic documents, but the ruling itself only decides the facts presented -- delivery of medical records by a third-party retrieval company to a law firm.

Q: Can my business rely on this ruling if we're not the Applicant?
A: No. As the ruling itself states, it is binding on the Department of Revenue only with respect to the requesting Applicant, only for three years from the date of the letter, and only so long as the facts don't change and the underlying law isn't changed by the General Assembly or the courts. Other taxpayers cannot rely on it directly, though it can be a useful indicator of how the Department reasons about similar facts.

Q: What if the medical records are delivered on paper instead of electronically?
A: This ruling doesn't address that scenario. Paper copies are physical, tangible items, so they could be treated differently than electronic delivery under Missouri's sales tax rules. The ruling's holding is specifically limited to electronic delivery.

Q: What should I do if a vendor keeps charging sales tax on electronic document delivery?
A: Consider raising this ruling with the vendor and, if the issue isn't resolved, consulting a licensed Missouri tax professional or seeking your own guidance from the Department of Revenue, since this ruling does not bind the Department as to any taxpayer other than the original Applicant.

Citations and references

Statutes and rules:

• Section 144.020.1(1), RSMo (imposition of sales tax on retail sales of tangible personal property)
• Section 536.021.10, RSMo (letter ruling authority)
• 12 CSR 10-1.020 (letter ruling procedure)

Subject

Taxability of Electronic Documents

Source

• Landing page: Missouri DOR Rulings Search
• Ruling: LR 8396

Original ruling text

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 November 19, 2025.

The facts presented in your letter ruling request are summarized as follows:

Applicant is a Plaintiff's law firm providing legal services to clients who have suffered serious injuries. It is necessary for Applicant to request medical records related to the client's treatment in order to properly serve that client. Applicant submits requests to various entities for these records, and these entities will outsource their medical record retrieval to the 3rd party company MRO (Retriever). Retriever charges sales tax on electronic delivery of medical records to Applicant. Retriever told Applicant the State of Missouri required sales tax be collected on such deliveries.

ISSUE:

Is electronic delivery of medical records subject to sales tax in Missouri?

RESPONSE:

No. Electronic delivery of medical records is not subject to sales tax because electronic documents do not constitute tangible personal property.

Section 144.020.1(1), RSMo, provides:

"A tax is hereby levied and imposed...upon all sellers for the privilege of engaging in the business of selling tangible personal property or rendering taxable service at retail in this state."

Electronically stored information is not tangible personal property. Electronic documents are not tangible, and thus the sale of electronic documents does not constitute the sale of tangible personal property. Missouri does not tax non-tangible property. Therefore, Retriever's sale of electronically delivered medical documents is not subject to sales tax under Missouri statute.

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 Gabriel Barnes, General Counsel's Office, Post Office Box 475, Jefferson City, Missouri 65105-0475, phone (573) 751-0961.

Sincerely,

Trish Vincent