Medical Supplier Properly Denied Illinois Business Tax Break

The Illinois Department of Revenue properly imposed about $411,000 in retailer’s occupation tax on a medical equipment supplier for sales the company made to managed care organizations, a state appeals court ruled Tuesday.

Midwest Medical Equipment Solutions Inc. believed it was entitled to the governmental body exemption for sales of breast pumps and nebulizers to individuals enrolled in Medicaid. Because a majority of Medicaid recipients are now enrolled in MCOs, Midwest doesn’t sell directly to a government body, the Illinois First District Appellate Court ruled.

“As the Department argues, there would be no end to this exemption if any ...