The Indiana Department of Revenue recently addressed the taxability of various healthcare-related information management services. Certain of the taxpayer’s services consisted of retrieving medical records and delivering the records by paper copy, electronic export or electronic scan. Fees received for electronically delivered records were not taxable because the records did not meet the definition of “specified digital products.” The taxpayer argued that the provision of medical records in paper form was likewise not taxable because the true object of customers purchasing these services was to obtain the intangible data contained in a patient’s medical record. The company also argued that it was providing a professional service when it retrieved medical information. The Department, however, disagreed. When the taxpayer’s customers paid for records and received those records in paper form, they were receiving taxable tangible personal property. While the retrieval service was important, in the Department’s view, the true object of the transaction was not the service, but the record itself. The Department also concluded that any photocopying fees as well as shipping and handling charges associated with the paper copies of the medical records were subject to tax. For more information, on Revenue Ruling #2018-07ST, please contact Dave Perry at 513-763-2402.