Is a certified sonographer's fee for a veterinary ultrasound exam -- including the written report, video tape, and thermal prints she gives the client -- subject to New York sales tax?

Subject

Shane, is whether the sales of her ultra sound services are subject to sales tax.

What this means for you

A certified human sonographer, not a veterinarian, ran a business performing ultrasound exams on animals -- abdominal, thoracic, pregnancy evaluations, and ultrasound-guided biopsies/aspirations. She couldn't diagnose or treat; she gave each client a written "impression" of her findings (recommending they get it interpreted by a specialist), along with the video tape of the exam and thermal prints, all for one undivided fee.

New York generally taxes "information services" -- collecting, compiling, or analyzing information and furnishing reports of it to others -- but specifically excludes information that is personal or individual in nature and that is not, and may not be, substantially reused in reports furnished to other clients. Because each written impression here was specific to that one animal and client and couldn't be recycled into another client's report, the Department found the whole charge exempt.

The opinion flags an important boundary, though: if she ever sold just the video tape and thermal prints, with no accompanying written report, that would be a straightforward sale of tangible personal property and would be taxable. The exemption rides on the personal-information report being part of what's sold, not on the general nature of the business.

Q&A

Q: Why is a personalized report exempt when other "information services" are taxed?
A: New York's information-services tax specifically carves out information that's personal or individual and can't be reused in reports to other customers -- like a diagnostic report about one specific patient (or animal). A generic market report sold to many subscribers wouldn't qualify; a one-off, patient-specific finding does.

Q: Does it matter that she bundles the video tape and thermal prints with the report for one fee?
A: Here, no -- the whole package (report, video, prints) was treated as exempt because it was delivered together as part of the personal, non-reusable report. But the opinion warns that selling only the video tape and thermal prints, without any report, would be a taxable sale of tangible personal property.

Q: Does this analysis depend on her not being a licensed veterinarian?
A: The opinion doesn't turn on her licensure status -- it turns on the personal/individual nature of the information delivered. The exemption is about the character of the report, not who is qualified to interpret it.

Citations

• Tax Law § 1105(a) -- imposes sales tax on retail sales of tangible personal property.
• Tax Law § 1105(c)(1) -- taxes information services (collecting/compiling/analyzing and furnishing reports), but excludes personal or individual information not substantially reused in reports to other persons.

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao_1995.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a95_22s.pdf

Original ruling text

New York State Department of Taxation and Finance

Taxpayer Services Division
Technical Services Bureau

TSB-A-95 (22)S
Sales Tax
June 21, 1995

STATE OF NEW YORK
COMMISSIONER OF TAXATION AND FINANCE
ADVISORY OPINION

PETITION NO. S941031I

On October 31, 1994, a Petition for Advisory Opinion was received from Pamela L. Shane
d/b/a Thunder Ridge Ultra Sound Service, 1708 Valley Drive, Syracuse, New York 13207-2845.
The issue raised by Petitioner, Pamela L. Shane, is whether the sales of her ultra sound
services are subject to sales tax.
Petitioner is a certified human sonographer with experience in both human and veterinary
ultra sound procedures. Petitioner is not a veterinarian and cannot provide her clients with a
diagnosis or a treatment plan. Petitioner recommends that her clients obtain an interpretation of her
findings from a radiologist, cardiologist, or internist. As an alternative, Petitioner has made
arrangements with a board certified veterinary radiologist to review the VHS tapes for an additional
fee.
The types of ultra sound services that petitioner provides include abdominal, thoracic
including M-mode, pregnancy evaluations, and ultra sound guidance for aspirations and biopsies.
During and following the examination Petitioner will give her clients an impression of the ultra
sound findings (abnormal and/or normal), the video tape of the exam, and thermal prints for
documentation. Petitioner does not separately charge for any of her services. The impression given
by Petitioner to her clients is in the form of a written report.
Section 1105(a) of the Tax Law imposes a tax upon "[T]he receipts from every retail sale of
tangible personal property, except as otherwise provided."
Section 1105(c)(1) of the Tax Law imposes a tax upon:
The furnishing of information by printed, mimeographed or multigraphed matter or
by duplicating written or printed matter in any other manner, including the services
of collecting, compiling or analyzing information of any kind or nature and
furnishing reports thereof to other persons, but excluding the furnishing of
information which is personal or individual in nature and which is not or may not be
substantially incorporated in reports furnished to other persons. (Emphasis supplied)
Petitioner is selling her clients written report (impressions) which are personal or individual
in nature and which are not and may not be substantially incorporated in reports furnished to other
persons and thus the sale of such reports are not subject to the sales tax imposed under section

-2­
TSB-A-95 (22)S
Sales Tax
June 21, 1995

1105(c)(1) of the Tax Law. It should be noted that if Petitioner were to merely sell VCR tapes and
thermal images without any reports, such sales would be subject to the sales tax imposed under
section 1105(a) of the Tax Law.

DATED: June 21, 1995

s/PAUL B. COBURN
Deputy Director
Taxpayer Services Division

NOTE: The opinions expressed in Advisory Opinions
are limited to the facts set forth therein.