Taxable Sales

Sales of the following items are taxable unless an exemption applies.

• Books, brochures, CDs, DVDs
• Digital products, including audio, audio visual, and books, see Digital Products
• Hand creams or lotions
• Ice packs, hot packs, heat pads (disposable, nonreusable)
• Non-medicated muscle-soothing ointment, liniment, mineral ice, see Drugs

Vitamins, minerals, herbs, herbal capsules or pellets, enzymes, or other dietary supplements, see Dietary Supplements

Give your supplier a completed Form ST3, Certificate of Exemption. Specify the Resale exemption.

Massages are taxable unless the massage is for the treatment of illness, injury, or disease.

If you contract with a massage therapist to provide massage services, the party who bills the customer is responsible for collecting and reporting sales tax. If their customer has a written referral for massage therapy, sales tax is not due.  A written referral must:

• State the massage is for ongoing treatment of illness, injury, or disease
• Be written by a licensed health care provider or licensed health care facility
  A written referral is a form of tax-exempt documentation, and you must keep a copy of all of them.
   

For more information, see Massages.

Copies of medical records are taxable unless they are electronically transferred. For more information, see Revenue Notice 02-15, Copies of Scanned Documents.

If you sell or lease equipment or other items you used in your business, the sale or lease may be taxable. For more information, see Isolated and Occasional Sales.

When you sell a taxable item, you must charge the state general sales tax and any local sales taxes that apply. Calculate tax based on the taxable sales price of the item (including any delivery charges).