Tennessee's Department of Revenue ruled that subscription fees for mobile healthcare solutions are subject to sales tax when software is the transaction's primary purpose. The ruling examined a heart health management subscription that includes a mobile app for tracking blood pressure and activity, a Bluetooth monitor, and technical support. The state determined the entire subscription is taxable because software performs the tracking and guidance, not medical professionals. These subscriptions do not qualify as exempt "information or data processing services" because the app tracks participant data rather than converting raw data into machine-readable form.

The bottom line: Healthcare technology companies selling subscription-based monitoring solutions in Tennessee must collect sales tax on the full subscription price, including bundled physical devices. Companies cannot separately itemize service components to reduce tax obligations unless those services are the primary transaction purpose.